Ex-PBOC Adviser Li: Yuan Appreciation Pressure Likely Induced By Risks In US Economy
First Published Sunday, 29th April 2012 04:39 am - © 2012 Dow Jones
SHANGHAI -(Dow Jones)- Chinese currency is close to an equilibrium level in the short term given the country's shrinking surpluses in current and capital accounts, but may face appreciation pressure in the medium term, said a former adviser to the People's Bank of China on Sunday.
"Appreciation pressure for the yuan in the medium term may come from risks facing the U.S. economy which may lead to a decline in the value of the greenback," said former central bank adviser Li Daokui, who left his position in March.
He also said that the biggest problem facing the yuan in its internationalization is that "we don't have high quality yuan assets for international investors.
"The internationalization of the yuan won't make real progress until the quality of yuan assets improves," he added.