Currently, there is a lack of foreign exchange futures and others RMB derivatives, aggravating the loss suffered by the industries and enterprises as a result of the fluctuations in foreign exchange. This stands in stark contrast to the rapid development of RMB derivatives at the offshore markets.

ANBOUND's research team points out that this reveals that in propelling the "the Belt and Road" strategy, China has neglected the importance of derivatives market as a hedging tool and a strategic measure.

The two-way volatility in RMB exchange rate has now become new normal, market should have adequate foreign exchange risk management in place and China should expedite its works in establishing a trading market for foreign exchange derivatives.