The 100 Chinese yuan or Renminbi (RMB) notes in Beijing, China. Photo by MARK R. CRISTINO / EPA
June 11 (Asia Today) -- China's renminbi, also known as the yuan, has strengthened sharply in recent months as Beijing seeks to elevate the currency's global standing, but its rapid gains may create new risks for the Chinese economy.
The yuan recently reached its strongest level in three years and three months, prompting some Chinese media to describe the move as an advance by the currency. The trend is expected to continue for the time being.
According to recent reports by Chinese media, including National Business Daily, the yuan was poorly regarded until the end of the last century. Although the official exchange rate hovered around 8.2 yuan per dollar, the currency often traded at about 9 yuan per dollar on black markets in Beijing and other cities.
The yuan's status began to change after China's economy expanded rapidly in the early 2000s. After the 2008 global financial crisis weakened confidence in the U.S. economy, the yuan strengthened past 8 per dollar, then 7 per dollar, at times trading in the 6-yuan range.
