Another less used measure is RMB swap against foreign currencies, involving two transactions in opposite directions featuring domestic currency against foreign exchange between one company and one bank.

"It's unrealistic to have exporters fight alone against a strengthening currency as the country's financial system is still embryonic and potentially vulnerable," says Tan Yaling.

She says the government needs to extend currency elasticity and make the exchange rate formation more market-oriented by bringing in more market makers --banks and financial institutions that are obliged to quote both selling and buying prices through the interbank foreign exchange market.

"The most important thing is that all participants in the interbank foreign exchange market should learn to perform in a professional way while the government should do more research to identify the real value and the equilibrium price of the RMB," she says.

Ha Jiming, chief economist with the China International Capital Corporation predicts the value of the RMB will rise to 7.3 yuan against US$1 at the end of the year if the dollar maintains its performance.

"It will take three to five years to ease the pressure for further appreciation of the RMB yuan," he says.