As the Chinese yuan keeps weakening against the dollar, a question is becoming acute for Beijing: should China let the market take its course and permit a deep currency fall or should it keep burning its foreign exchange reserves to support the currency's value?
The debate over what Beijing should do about its currency is heating up as regulators' ambiguity over the question is becoming costly and unsustainable, particularly since the Federal Reserve raised interest rates.
Against Beijing's desire for a "controllable" depreciation, the government is losing control over capital flight, depleting foreign exchange reserve stockpile at an alarming speed, and failing to convince investors that there is "no fundamental basis for the continuous depreciation".
Yu Yongding, a renowned Chinese economist who sat on the central bank's monetary policy committee when the yuan was revalued in July 2005, said it was time for Beijing to reconsider the matter.
"The fear of the yuan's depreciation has become a burden for us," Yu told a forum over the weekend.