Investors should buy yuan-denominated assets or open yuan deposit accounts because the Chinese currency may appreciate by as much as 6% a year, according to Bank of Singapore.
“If anything is close to certain it’s that the renminbi will appreciate,” Head of Product Development Marc van de Walle said at a media briefing in Singapore today, using the yuan’s alternative name. “It’s got the potential to appreciate between 4% and 6% annually, and maybe even a bit faster,” he said, without providing a specific time frame.