|
BEIJING, Dec. 31-- The Chinese Renminbi (RMB) surprised the world with its strength in 2017. Why? As of Dec. 29, the last trading day of 2017, the yuan's onshore exchange rate stood at 6.5120 against the U.S. dollar, strengthening by 6.72 percent for the year, the sharpest annual appreciation in nine years, according to calculations by financial information provider Eastmoney.com. The performance was far from what the market had anticipated a year ago, when expectations ran high for a weaker yuan. A softening dollar against a basket of currencies was part of the story, as shown by declines in the dollar index in the past year. But the RMB also demonstrated strength against other currencies. The yuan exchange rate composite index released by the China Foreign Exchange Trade System, which measures the yuan's strength relative to a basket of 24 currencies including the dollar, euro and Japanese yen, came in at 94.37 at the end of November, firming from 94.22 at the end of January. With sound economic fundamentals, improved regulation, a relatively tightened monetary environment and increased global use of the currency, the yuan's stability has been justified and will stay well-supported. "The RMB will hold steady against a basket of currencies in 2018, with two-way movements becoming a norm," said a research report from China Everbright Bank. ECONOMIC FUNDAMENTALS A robust Chinese economy helped the yuan stage a turnaround, bolstering investor confidence in the currency. | 
