Too Soon to Say Yuan Rally Has Ended: Guan Tao

The yuan's weakening in August didn't spell the end of the currency's current round of rally, Guan Tao, the chief global economist of BoC International and a former forex official, wrote in a column published by the 21st Century Business Herald. The yuan's movement may become more unpredictable as it gets more closely linked to asset prices, and the exchange rate will fluctuate more in excess, Guan wrote. The yuan has become more like a mature currency as the exchange gets more market-based, and its gains or losses are no longer simply tied to trade surpluses, wrote Guan. The yuan's recent round of appreciation was also not tied to the banks' exchange settlements, including those done on behalf of their clients, Guan wrote.