At a financial forum in Shanghai recently, Mr Lian Ping economist with the Bank of Communications expected the CNY exchange rate against dollar to rise further in the remainder of this year by 5% to 7%, having climbed 2.4% so far this year.

Most analysts predict the rise at 5%n to 6%. Mr Lian indicated that the RMB value now faces pressure from Europe and America, and from the existence of huge foreign exchange reserves.

At the same meeting, central bank governor Zhou Xiaochuan admitted that expansionary policies in the last few years have contributed to asset bubbles and inflation and hinted that authorities may choose cautious macro policies in the future.

Delegates also believed that China's interest rate is to climb continually in the next decade.

(Sourced from China Coal Times)