PBOC Adviser Says Yuan Should Weaken as Dollar Set to Strengthen
- Capital opening-up should continue despite outflows, Fan says
- ‘Natural’ for investors to look outside for opportunities: Fan
PBOC Advisor Would Like to See More Yuan Outflows
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People’s Bank of China’s adviser Fan Gang said a gradual devaluation of the yuan should be allowed as the U.S. dollar is set to strengthen, and that moves to loosen the nation’s capital borders should continue despite outflows.
China’s economy may not pick up, but has bottomed out with housing and manufacturing improving, Fan said in a Bloomberg Television interview in Shanghai. The government should use "moderate control to allow gradual yuan devaluation," said Fan, who is also director of the National Economic Research Institute.