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Barclays Bullish On CNY

CNY

"China’s reopening has lifted the CNY’s outlook, and our model suggests potential additional gains of 7% against USD on improved growth. Expectations of a stronger CNY could also accelerate conversion of FX deposits. We expect more appreciation but at a slower pace, as balance-of-payments headwinds offset some positives."

  • "China’s reopening and visible policy shift toward the property sector has lifted the CNY's outlook, and there could be more upside in the medium term. Our model suggests USDCNY could fall to 6.26 on a significant upward revision to China’s growth outlook; this implies CFETS strengthening to 104.8. The likely faster recovery in growth poses downside risks to our USDCNY forecasts (6.70 at end-2023)."

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