The Chinese Yuan has crossed the psychological barrier of
7.5 RMB/USD, a level last seen nearly a decade ago. The currency鈥檚 appreciation has been gradual
but visible, not withstanding the cries of western bureaucrats. By all accounts, the Yuan will continue
rising, though not at the same pace as its trade surplus, which is projected to
jump from $177 Billion in 2006 to $300 Billion in 2007. Predictions regarding the extent of the
appreciation range from 20% to 400%, the implication being that it depends who
you ask. But the general consensus is
clear: the Yuan is pointing upwards. Bloomberg
News reports:
Non-deliverable forward contracts show traders are betting
the yuan will reach 7.0070 in 12 months, a gain of 6.9 percent from the spot
rate, and 6.95 by the end of 2008.
Read More: Yuan Gains Past 7.5
for First Time in Decade as Surplus Widens
0 comments
Post a Comment