Skip to content
Subscriber Only

Deutsche Bank Sees Yuan Falling 17% as Outflows Accelerate

  • Currency will drop to 8.1 a dollar by end-2018, Deutsche says
  • Potential PBOC easing, Fed rate increase seen driving outflows
Updated on

The yuan will weaken 17 percent over the next two years as government efforts to cool the housing market, easier monetary policy and higher U.S. borrowing costs spur capital outflows, according to Deutsche Bank AG.

China’s currency will end 2017 and 2018 at 7.4 and 8.1, respectively, compared with current levels of around 6.7, economists Zhiwei Zhang and Li Zeng wrote in a report dated Thursday. The nation’s economic growth will probably slow to 6.2 percent next quarter, while outflows will intensify in the next few months, they wrote.