Commerzbank economists They expect the yuan to appreciate slightly throughout this year due to the earlier-than-expected reopening after Covid and the expectation of more market-friendly economic policies.
The yuan gains attractiveness
“The Covid-zero policy shift has improved growth prospects for this year. Once the waves of infection have passed, economic activity could return to normal in the second quarter or even as early as March.”
“The shift in the government’s economic policy is contributing to improve prospects for this year and next. The government is eager to restore confidence.”
“The PBoC will optimize the management of expectations to keep CNY exchange rates at a ‘reasonable equilibrium level’“.
“Due to the earlier-than-expected post-Covid reopening and an expected spike in dollar strength, we now anticipate the CNY will continue to appreciate slightly throughout this year.”
Source: Fx Street
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