Goldman predicts RMB rises to 6.7 in next 12 months
While the Sino-US trade war is still in progress towards reaching a stalemate, Goldman Sachs offers an optimistic angle towards RMB exchange rate trends. The bank expects the exchange rate of RMB against USD to remain at 6.8 for the following six months and the exchange rate against USD to rebound from the current level of 7, down to 6.7.
Goldman Sachs’ New York strategist Zach Pandl believes that until more results can be drawn from the negotiation, eliminating tariff and removing trade barriers are the best possible options for increasing the value of RMB. However, with the US stock market drop, the risk of further escalating the trade war has been reduced. Therefore, it is possible that the negotiations will result in continuous truce.
Furthermore, the bank predicts that the off-shore exchange rate of USD against RMB to stabilize at 6.8, 6.8, and 6.7 in the coming 3, 6, and 12 months respectively.