Yuan Seen Having No Clear Advantage in 2021: Ex-Forex Off'l

The yuan will show no clear advantage this year as the recovering global economy makes other nations' assets more attractive, Guan Tao, an economist at Bank of China Securities and a former official at State Administration of Foreign Exchange, wrote in a commentary by Netease Research. The yuan's valuation is also affected by China's rate of Covid inoculation, which is slower than some of its competitors, Guan said. The PBOC has also refrained from significant tightening, said Guan. On inflation, Guan said China's CPI may be moderately capped at 3%, given rising pork supplies and stable industrial production.