USD/CNY: Renminbi is likely to see significant gains – Westpac

China’s Renminbi is likely to see significant gains against the US dollar, in the opinion of analysts at Westpac Institutional Bank. 

Key quotes

“From around 7.00 at June, we expect a moderate appreciation in the Renminbi, to 6.85 end–2020 and then 6.60 end–2021.” 

“The justification for this view is first the strong progress China has made in removing the threat of COVID–19 from its shores and getting industry back to work. And second, as we move into 2021, their structural development story becoming more apparent, bolstering gains.”