The Renminbi has performed strongly over the past month, with the USD/CNY pair falling from 6.95 to 6.85, continuing its downtrend from 7.17 back in May. Renminbi's gains highlight the regions' promise, with USD/CNY forecast at 6.50 by end-2021, per Westpac.
“We now expect China's economy to grow by 2.5% in 2020 in year-average terms, and for this gain to be followed by a 10.5% rise in 2021. To this view for growth, there are downside risks related to US/China trade tensions. But equally there are upside risks associated with export opportunities in the Asian region and, for as long as COVID-19 persists globally, an internalisation of services demand within China's borders.”
“The risks around our USD/CNY 6.85 end-2020, 6.50 end-2021 and 6.40 mid-2022 forecasts are broadly balanced, albeit with a higher likelihood of volatility near-term.”
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