BEIJING (Reuters) - The Chinese yuan will stay basically stable with increased flexibility as China focuses on reform and higher quality growth, the country’s foreign exchange trading platform operator said on Monday.
While market expectations are for the U.S. dollar to continue to strengthen, but there is a possibility its rise has outstripped these expectations and could fall back, the China Foreign Exchange Trade System (CFETS) said on its website.
Last month CFETS said it was changing the composition of the basket used to set the yuan’s daily value, increasing from Jan.1 the number of currencies in the basket to 24 from 13.
China has been promoting use of the index, partly to divert attention from the yuan’s value against the dollar, which fell about 6.5 percent last year.
Reporting by Beijing Monitoring Desk; Editing by Clarence Fernandez