Strong case for caution over RMB appreciation

Since the central parity rate of the yuan breached the psychological mark of 7 against the US dollar on April 10, it has aroused wide concern in and out of the country on the renminbi exchange rate.

Given the complicated situation on the global financial market, it is impossible, at this moment, to predict when and where the yuan appreciation against the greenbacks would stop. And the yuan appreciation would deal comprehensive impacts on the Chinese economy.

Viewed against a global background, the renminbi appreciation is not dramatic, especially when it is compared with the appreciation of Japanese yen.