Yuan Unlikely To See Long-term Depreciation - Journal

The yuan is unlikely to depreciate over the long term as China's economy is stabilising and the trade surplus remains high, the China Securities Journal reported citing analysts. Any short-term currency fluctuations will be controlled by authorities as they have sufficient tools to prevent overshooting. The yuan's recent weakness reflects the Fed’s monetary tightening and the impact of the European energy crisis, the newspaper said citing CITIC Securities chief economist Ming Ming. Ming said the yuan breaching the 7 mark against the U.S. dollar was not as important as it had been in the past. Both the onshore and offshore yuan rebounded over the past week after approaching 7 several times. The onshore yuan closed at 6.9311 on Tuesday.