Will the Chinese renminbi keep rising?

 Will the Chinese renminbi keep rising?

Author: Zhaoyong Zhang, Edith Cowan University

The trend of the Chinese renminbi (RMB) rising against the US dollar reached a three-year high in May 2021. This signalled an end to the currency’s depreciation in response to the Trump administration’s trade war with China. Whether the current rally in RMB will be maintained remains a hotly debated topic, especially given the current COVID-19 pandemic-related global economic recovery and the long-term headwinds to China’s growth.

China’s sound economic outlook and strong fundamentals have contributed to this trend. With its economy growing by 2.3 per cent in 2020, China was the world’s only major economy to achieve growth despite COVID-19 lockdowns.

China is expected to take the lead in the global recovery, with domestic consumer spending rising faster than anticipated. The IMF’s October projection indicates that the Chinese economy will grow by 8 per cent in 2021. Recent data…

Read full article…www.eastasiaforum.org