File photo of a Chinese clerk counts yuan banknotes at a branch of Bank of China in Nantong city, China's Jiangsu province, July 23, 2018. (PHOTO / IC)

BEIJING — There was limited room for China's yuan to continue to weaken, as its depreciation was mainly a result of short-lived factors whose impacts are likely to diminish over time, the China Securities Journal reported.

The yuan was rendered weaker by a strong dollar, thus its devaluation was a passive one, according to the paper. It was estimated that such depreciation was unsustainable, as the dollar index was unlikely to increase further in light of the large-scale monetary easing in the United States and the reducing impacts of the pandemic.

China's quick epidemic response has enabled its economy to outperform other economies, and its prudent monetary policy has remained unchanged during these extraordinary times, according to the paper

ALSO READ: Yuan's role in global payments increases

China's quick epidemic response has enabled its economy to outperform other economies, and its prudent monetary policy has remained unchanged during these extraordinary times, according to the paper. It dismissed economic performance and policies -- the two major forces shaping the general tendency of bilateral exchange rates -- as reasons behind the yuan's depreciation against the greenback.

Since the country possesses adequate foreign exchange reserves and has many policy tools available, the possibility was relatively slim that the Renminbi exchange rate would fluctuate in a disorderly manner.

READ MORE: China's new yuan loans rise in April

It is normal and reasonable for the Renminbi exchange rate to fluctuate within a certain range, which can do more good than harm if such changes occur in a controllable and orderly way, according to the paper.