Think tanks expect slower yuan appreciation

Two leading mainland think tanks have estimated that the yuan will appreciate by 1-2% against the US dollar next year, a considerable slowdown from the 6.3% appreciation seen so far this year, the South China Morning Post reported, citing state media. In an article published in the state-run China Securities Journal on Monday, economists at the National Development and Reform Commission and the State Information Center said the US dollar was likely to remain strong while "periodic depreciation" was possible for the yuan next year. The report was released as market watchers attempt to gauge the effect of the global financial crisis on the Chinese currency.