The depreciation of the Chinese currency yuan will have little impact on the country’s economy, said Wang Bao’an, director of the National Bureau of Statistics, on Tuesday.
“The depreciation of renminbi is triggered by two factors, both domestic and foreign ones. One of them is the appreciation of the U.S. dollar. That’s a practical reflection in China. The appreciation of the U.S. dollar brings about the depreciation of renminbi. I think the depreciation of renminbi and the reduction of foreign exchange reserve won’t influence the Chinese economy much, or not that obvious, because its impact is quite small on China, a country that has more than three trillion U.S. dollars foreign exchange reserves,” said Wang Bao’an at a press briefing on Chinese economic performance.
Wang said the depreciation of yuan will not continue as a trend as he believes the Chinese economy will continue to grow at a medium-to-high speed in the coming years.
“In the long run, the depreciation of yuan will not become a trend, as we are now quite confident about the growth of the Chinese economy. I think the Chinese economy will continue to grow at a medium-to-high speed in the next period, which will become a normal state. The general economic growth momentum has not changed,” he said. (CCTV/Reuters)