The yuan rose to as much as 7.4834 versus the dollar from 7.4926 yesterday, heading for the biggest weekly gain in five weeks. It has climbed more than 10 percent versus the U.S. currency since the end of a fixed exchange rate in July 2005 and fallen 7 percent against the euro.
There’s debate in China on the merits of a stronger currency, which would ease trade tensions and the inflow of cash by making exports more expensive. A report circulated last week within the National Development and Reform Commission, the top planning agency, called for a 15 percent to 20 percent one-off revaluation
China’s economy, the biggest contributor to global growth, grew 11.5 percent in the third quarter, adding pressure for faster currency appreciation and higher borrowing costs to curb inflation and asset bubbles.
I have predicted that China’s will pass the USAs economy on an exchange rated basis in 2018 plus or minus 3 years.
My prior article with an earlier prediction of 2020 for China’s economy passing the USAs