Since the UK voted to leave the EU in the June 23 referendum, it has resulted in the sudden appreciation of dollar as well as affecting the yuan exchange rate.

Recently, the international market is expecting yuan to depreciate.

But it is worth noting that a considerable number of market analysts is of the view that China's central bank has tolerated or even allowed the yuan to depreciate. They believe that following the slowing in economic growth, while Chinese policy makers are trying to steer yuan towards depreciation, they also want to contain the market expectation on rapid yuan depreciation.

The research team at ANBOUND Consulting believes that the central bank of China does not intend sudden yuan devaluation and there is no way the central bank will orchestra yuan devaluation through policy tools.

In light of the international development following Brexit, maintaining a stable yuan exchange rate or even allowing yuan to appreciate will be in China's interest.

Currently, yuan devaluation does not form part of the central bank’s policy goals, China should establish a positive image in the international market, i.e. its economy is robust and its monetary policy is stable.