Yuan May Rise to 5 Per Dollar in About 5 Years, CLSA Says
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China’s yuan may rise to 5 per dollar in about five to six years of time as the central bank will permit appreciation to curb growth in the nation’s foreign-exchange reserves, CLSA Ltd. said.
The yuan is 30 percent undervalued against the dollar, said Amar Gill, CLSA’s head of thematic research in Hong Kong, citing an estimate based on purchasing-power parity. China’s central bank loosened controls on the yuan’s exchange rate on June 19, after keeping it little changed at 6.83 per dollar for almost two years by selling the local currency in the interbank market.