The exchange rate of the Chinese yuan against the US dollar will be 5.7 in 2017, Caixin reports, citing a private think tank’s prediction.
Beijing based West Brothers Economic Institute predicts China’s currency will appreciate 9.5 per cent over the next five years, up from its current rate of 6.3 to 5.7 against the US dollar, Caixin, a leading business weekly in China says on its website.
The institute said its forecast was based on an anticipated 7.5 per cent annual growth in China and 2 per cent in the US. The different growth rates of the two countries mean there is still room for further appreciation of the yuan.
China’s yuan has appreciated 32 per cent over the past seven years. During which time, China’s GDP expanded 123 per cent, more than ten times of 11 per cent GDP growth in US of over the same period.
Another contributing factor is the loose monetary policies of other countries, the report says, as United States’ quantitative easing continues to drive international flows of capital into China.
The yuan’s value against the US dollar remained around 6.3 in 2012.