Capital account shifts into the red

Balance of China's capital and financial account

"The deficit under the capital account will also help reduce the country's pressure on its mounting foreign exchange reserves and allow the country to move toward the goal of achieving a balance in its international payments," he said.

But Xu said that the divergence in the monetary policies of the United States and the eurozone will further complicate China's foreign exchange policies.

The yuan depreciated for four days in a row last week, touching the lower limit of the 2 percent daily trading band set by the People's Bank of China, the country's central bank.

While the yuan has lost value against the dollar, it has appreciated against other major currencies, including the euro, the British pound and the yen.

Xu forecast the yuan will continue to depreciate against the dollar this year by 2 to 4 percent.