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Oliver's Insights - The Chinese Renminbi heading towards appreciation

6 April 2010 - This note looks at the outlook for the Chinese Renminbi.

The key points are as follows:

  • Tensions between the US and China around the value of the Renminbi are escalating again.
  • The most likely outcome is that China will allow a resumption of modest Renminbi appreciation of around 7% over the next year.
  • On balance this is likely to be positive for China and for Australian mining stocks.