CNBC reports that China’s foreign exchange regulator told businesses Friday to prepare for more volatility in the yuan.

The Chinese currency strengthened roughly 1% this week against the U.S. dollar to levels not seen since July 2018. Less than five months ago, the yuan was at its weakest against the greenback since early 2008. 

One-year implied volatility of the yuan has climbed to 5%, versus less than 2% for previous years, indicating a basis of “increased flexibility” in the exchange rate, State Administration of Foreign Exchange spokeswoman Wang Chunying told reporters on Friday.

“In face of exchange rate fluctuations, businesses should strengthen their risk prevention awareness,” Wang said. She said that rather than expect one-way strengthening or weakening of the yuan, businesses should prepare for two-way moves in the exchange rate, and hedge appropriately without speculating.