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Yuan's Gain May Ease to 3-5% on Dollar in Two Years

CHINA PRESS
MNI (Sydney)

The yuan may edge up as much as 3-5% against the U.S. dollar in the next two years even as the U.S. economy is expected to rebound, lifting Treasury yields, wrote Cui Li, head of macro research at CCB International Securities, in a blog published by the China Finance 40 Forum. China's trade and current account surplus as shares of GDP may stagnate this year, weakening support for the yuan rally, Cui said. He expects the central bank to guide two-way yuan movement, tighten near-term capital inflows to avoid hot money while freeing outbound investments, or restart its balance sheet expansion to hedge short-term inflows.

MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com

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