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Renminbi's rise will be slower than expected: HSBC

Date: 10 Feb 2010

The renminbi should appreciate in the second quarter, but its rise could be slower than most what market observers expect. Beijing is unlikely to conduct a one-off currency gain.

Keywords (click to search): [China] [FX] [renminbi] [NDFs] [HSBC]

Pamela Tang

China will appreciate the renminbi in the second quarter at a slower pace than many expect, says HSBC.

The currency has been pegged at Rmb6.83 against the US dollar since mid-2008. HSBC forecasts that it will gain slightly to Rmb6.7 by June, or a miniscule 1.9% appreciation.

The bank predicts the currency will then rise again to Rmb6.6 by September and should end the year at Rmb6.5 – a 4.8% appreciation in total from today’s level.

HSBC thinks...

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