China's FX Market More Resilient To External Risks

China’s foreign exchange market has shown greater resilience and foundation to resist external shocks, with generally stable FX reserves and increased cross-border transactions, said the central bank-run newspaper Financial News citing analysts. A flexible yuan is the key to a wider opening of financial markets as it helps release pressure in a timely manner, the newspaper said citing Guan Tao, a former FX official. The yuan is more robust than other non-U.S. currencies, depreciating only 5.4% as of July 12 this year against the backdrop of a sharp 13% rise in the dollar index, significantly lower than the depreciations of the euro, yen and pound, which are 11.9%, 16.1% and 12.6% weaker, respectively, the newspaper said.