Officials with the central banks of China and the U.S. and a number of financial experts are holding a high-level dialogue in China's eastern city of Hangzhou. The leaders were to discuss the global financial market, exchange rates and investments during the two-day event that started Tuesday.

The vice governor of the People's Bank of China -- Chen Yulu -- warned during the meeting of increasing spillover effects from a divergence in global monetary policies.

"The divergence in monetary policies led to an expanded difference of interest rates, which may further strengthen the US dollar. But it will make most of the emerging economies face a currency depreciation and capital outflow. In a period of a strong US dollar, if emerging economies cannot solve the risk exposure problems caused by currency mismatch and term mismatch, it may trigger financial turbulence or even regional financial crisis in some emerging economies." said Chen.

Chen also said that China's relatively low inflation is conductive to a stable yuan, and there's no basis for persistent depreciation of the currency.

The vice governor also said that the yuan's depreciation will have little effect on Chinese exports.

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