USD/CNY: Chinese yuan seen rallying 10% to 6.00 on strong fund influx – Citibank
|The Chinese yuan is expected to rise to the highest levels in almost 30 years to 6.00 amid strong foreign inflows into the country’s bond and stock markets, Liu Li-gang, Chief China economist at Citigroup Inc said in his latest note.
Key quotes (via Bloomberg)
“A “flood” of foreign cash will chase yuan-denominated assets in 2021 because they’ll offer far better yield than the rest of the world.”
“The problem China faces next year will be huge, unrelenting capital inflow.”
“The yuan’s appreciation will be a key threat to China’s macro economy.”
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