The renminbi has been under pressure of late amid an outflow of foreign exchange. In order to assess the prospects for the currency in the coming year and examine key foreign exchange market factors,including the recent US presidential election,Debra Lodge,Managing Director Global Markets,Head of RMB Business Development North America interviewed Mu Zhiqian a former consultant to the State Administration of Foreign Exchange. The following is her interview of Mr. Mu.

Q: Donald Trump surprised many observers with his election as president. What influence will his election have on the global economy as well the Chinese economy and its financial system?

A: This was a decision of the American voters and this needs to be respected. Mr. Trump is pragmatic. I believe he will work to revitalize the U.S economy. The US has a very developed financial sector with a wide variety of financial products and huge trading volume. As a result of this advantage,the US economy plays the leading role in the global economy. However,what we see from its financial system at times is profit without the creation of material wealth. Many of the sophisticated hedging tools and other products are used to make profits but they ignore the real economy. China's financial sector is still in the developing stage. Even though the renminbi is now one of several global reserve currencies,the nation's financial sector is still a long way from becoming a mature one. China's leaders have repeatedly said that the objective of developing the nation's financial system is to contribute to the real economy. It seems that Mr. Trump may have similar views.

Q:The renminbi has been under substantial pressure. However,both the People's Bank of China and government policymakers have long stated that there was no possibility of the renminbi experiencing a prolonged depreciation. How would you describe this continued decline of the currency in the face of government statements?