Former FX official says China should avoid excess yuan appreciation

The Chinese yuan has been one of the best-performing Asian currencies this year, rising about 3% against a strengthening dollar

Avoiding excess yuan appreciation should be one of China's priorities in managing market expectations and regulations, a former senior official at the country's foreign exchange regulator has urged.
 

A challenge for exchange rate fluctuations or flexibility is that the currency could overshoot, deviating from its economic fundamentals, said Guan Tao, global chief economist at BOC International and the former head of the Balance of Payments department of the State Administration of Foreign Exchange (SAFE), writing in a social media post over the weekend.
 

"Market supply and demand were the dominant force driving the yuan rally this year, while orderly expanding