Despite the Chinese yuan depreciating against the US dollar,  some experts say the Chinese currency is actually on the right track. 

A recent International Monetary Fund (IMF) report said that the renminbi was broadly stable against the basket of currencies in 2017 and remained broadly in line with fundamentals.

“China’s economic growth is faster than most of countries in the world, so that’s the reason why Chinese yuan compared with most of countries is still appreciating,” explained Qu Qiang, the assistant director of the International Monetary Institute at Renmin University of China.

The central parity rate of the yuan against the US dollar has weakened 280 basis points to 6.7942. Qu said that the US is really on the quick boom of economy and the US dollar keeps growing stronger than Chinese yuan, which explained why the Chinese yuan is weaker compared to US dollar. 

“That’s a very normal economic phenomenon,” Qu told CGTN, adding that while the yuan's depreciating against the US dollar at the moment, its on track for the long-term. 

China is the stabilizing force in the global currency market, and it’s ironic that the country plays the game in the right way but being accused of doing the wrong thing, according to Einar Tangen, CGTN’s current affairs commentator.

But the report also noted that China’s credit growth was still unsustainably high, as some aspects of the country's rebalancing had slowed. The chief economist of China International Capital Corporation, Liang Hong, suggested that the central bank needs to combine efforts with regulators in the long run to boost growth, which would help stabilize the yuan's exchange rate.

Moreover, the IMF's annual External Sector Report pointed out that the US dollar was overvalued, which marked the second time this week that the IMF has made negative comments about the American currency. The report also listed the US together with Turkey and Argentina as countries with excessive current account deficits. And the Economist’s Big Mac Index released earlier this month showed that the US dollar is overvalued by about 30 percent against the British pound, and 16 percent against the euro.