In approximate terms, detail in 250 words or more what you think will be the exchange rate between the U.S. dollar and the Chinese RMB?
(Please type as I have hard time understanding people's writing)
Nordic corporate bank SEB has revised its forecast lower on the Chinese Yuan (CNY) against the U.S dollar to 6.10 by the end of this year, an appreciation of 3.174% over their previous projection of 6.30. By the end of 2019 the bank’s analysts predict the Greenback at CNY5.80 –
indicating an almost 5% strengthening on an earlier forecast (6.10).
According to SEB’s latest Currency Strategy report from this January, it was pointed out that China’s economy will slow to 6.6% in 2018 – down from 6.9% in 2017.
As China allows the currency to strengthen in lieu of U.S. dollar weakness, the strategist asserted that the “PBoC does not have to intervene and FX reserves won’t rise like we saw from 2005 to 2014. Lastly, U.S. trade tensions will not ease.”
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