Yuan up 5.5% in 2008 vs USD

China's central bank set the mid-point of the yuan's exchange rate against the dollar at 6.9015 on Thursday. This is the highest since the currency's revaluation in July 2005. The yuan has now appreciated more than 5 percent against the US dollar so far this year.

The chart shows the rising trend of the yuan's mid-point against the greenback since it was freed from the dollar. In the first quarter, the yuan's appreciation speeded up, while in April it held stable. And when it came to May, the speed of the yuan's appreciation resumed to the level of the first quarter.

Analysts say the trend reflects the dollar's ups and downs during the period. In the first three months, the exchange rate of the dollar fell sharply, and it rebounded in April, and a slight depreciation of the dollar appeared in May.

Yuan Yuedong, Chief Analyst, Global Financial Market Dept., BOC, said, "Basically the renminbi is going through a phase of appreciation and the yuan is under pressure of appreciation."

As some countries and regions like Vietnam are suffering high inflation, several experts say more effective measures should be taken in China to deal with the difficulties.