RMB will be one of the few currencies that can still outperform global currencies in the future

Since IMF decided to include the yuan in the basket of Special Drawing Rights (SDR) from 2016, joining the dollar, the euro, the pound and the yen, the internationalization process of renminbi has made a solid step forward and it will prompt China’s currency to strengthen dramatically as demand for the renminbi rises in the future.

The renminbi will likely be "stable" rather than depreciate against the greenback, while the US dollar is due to become stronger against the backdrop of rates normalization in the US. RMB might prove to be one of the few currencies that can still beat the US dollar, said Becky Liu, Senior Rates Strategist at Standard Chartered Bank (HK) Ltd.

Liang Hong, Chief Economist at China International Capital Corporation, added that "RMB will be at least as strong as the US dollar this year, if not stronger."

While some forecast that RMB will retain a depreciating bias in 2016, Premier Li Keqiang commented last Friday that China can maintain yuan exchange rate “basically stable at a reasonable and balanced standard,” adding there’s “no basis for a continued depreciation.” The Chinese government has no intention and no policy to devalue its currency, as the fluctuations in the currency market are a result of market forces, said Li Yuanchao, China’s Vice president, on the World Economic Forum’s annual meeting in Davos, Switzerland.

Rani Jarkas, Chairman of Cedrus Investments, an investment pioneer with years of financial experience in Asia, said, “Downward pressure on RMB is expected to ease. I expect RMB will remain one of the few currencies that can outperform the US dollar in the years to come.”