Yuan to rise 5%-6% this year...

May 9, 2011, 8:31 p.m. EDT

China advisor tips yuan to rise 5%-6% this year

By China Bureau

SHANGHAI (MarketWatch) -- The Chinese currency will rise by 5% or 6% in 2011, given China's efforts to accelerate internationalization of the currency, China Daily reported Tuesday, citing a government think-tank researcher.

The yuan could probably rise 3% in the first half and 2% in the second half, the paper said citing Zhang Monan, a researcher with China's State Information Center.

A one-off revaluation in the short term will put China in a difficult situation, Zhang said, adding that the adverse impact of yuan appreciation has hit companies, which have become very hesitant to sign large scale, long-term agreements.

Zhang said the current level of the yuan against the dollar is fairly reasonable, considering both the domestic and international economic situation.

Her remarks come after the People's Bank of China fixed the dollar/yuan central parity rate at a record low level of 6.4988 on Monday, as the annual China-U.S. Strategic and Economic Dialogue kicked off in Washington D.C.

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