Bloomberg Reports Roubini Says Cautious China to Limit Yuan Gain to 4%

Nouriel Roubini

Mar 8, 2010 8:34PM

From Bloomberg

By Ye Xie

 

March 8 — China will limit the yuan’s appreciation to 4 percent over the next 12 months because of a “super cautious” outlook on the global economy, said New York University Professor Nouriel Roubini.

The central bank may end a 20-month peg to the dollar as soon as the second quarter, allowing a 2 percent one-step gain, and then let the currency strengthen another 1 percent to 2 percent in 12 months, Roubini said in an interview in New York. The yuan rose 21 percent between July 2005 and July 2008, when the government halted its advance to protect exports.