Published by Mark Smith-HalvorsenThere is no foundation for a major appreciation in the yuan, the State Information Center, a Chinese think-tank has claimed.In a statement to the official China Securities Journal, the think-tank said regulators should continue to contain trading ranges now that the currency has been depegged from the dollar.Reuters reports that there was a particular concern that "hot money" would push up the yuan in global forex trading, although its appreciation thus far has been modest.Since the currency was depegged on June 19th, the yuan has climbed 0.7 per cent.Although the People's Bank of China (PBOC) has stressed that movements in the currency will still be tightly controlled, a statement issued this morning (July 26th) recognised that currency flexibility will allow for a more robust monetary policy."In recent years, the independence and effectiveness of our monetary policy has been badly hurt by the relatively rapid increase in capital inflows," explained the bank's deputy-governor Hu Xiaolian in a statement on the PBOC website.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site.