Renminbi exchange rate two-way fluctuation

This year, renminbi exchange rate fluctuation has changed people's impression that the currency can only appreciate.

The use of the yuan in cross-border trade and investment has grown rapidly in the past five years. China loosened its grip on the yuan-dollar exchange rate in March this year, widening the daily trading band to 2 percent from 1 percent.

The renminbi's exchange rate is now near equilibrium in general. Given that, the two-way fluctuation of cross-border capital flows will become the new normal.

Pedestrians walk pass PBOC's head office in Beijing on Nov 29, 2014. [Photo/IC]