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Risks of rising renminbi

China Daily | Updated: 2013-05-09 08:07

The renminbi's daily reference rate on Wednesday rose to a record 6.1980 per US dollar, but the recent strong appreciation momentum will not be sustained, since it will encourage more speculative capital inflows.

The currency has already risen by more than 1.4 percent against the dollar since the start of this year, with 1.1 percent gained since April.

However, there have been increasing signs of speculative capital inflows to cash in on the currency's appreciation, thanks to the monetary easing implemented by some developed economies.

Risks of rising renminbi

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