Goldman Sachs sees Chinese yuan 20% undervalued, raises forecasts
Crypto Briefing
Goldman Sachs projects the Chinese yuan will strengthen significantly as internal models suggest the currency is currently 20% to 30% undervalued.Summary
Goldman Sachs identifies the Chinese yuan as significantly undervalued, with internal models suggesting it is trading 20% to 30% below fair value. Driven by a robust export sector and a widening current account surplus, the bank has raised its USD/CNY forecasts, targeting 6.50 over the next twelve months. Despite historical currency management by the People’s Bank of China and existing capital controls, analysts led by Teresa Alves remain bullish, though they note that trade tensions and potential policy intervention remain key risks to this outlook.
(Source：Crypto Briefing)