"Goldman Sachs Predicts Chinese Yuan to Strengthen Against US Dollar in the Coming Year"

# Goldman Sachs Predicts Stronger Chinese Yuan Against U.S. Dollar in the Next 12 Months Goldman Sachs analysts anticipate the Chinese yuan (CNY) to strengthen against the U.S. dollar (USD) over the upcoming 12 months, as reported by Daily Hodl on October 13. Presently, the exchange rate stands at 1 U.S. dollar to 7.2 yuan. However, Goldman Sachs forecasts this to drop to 7.0 yuan within a year, signaling an increase in the yuan's valuation. Referencing Bloomberg, Goldman Sachs emphasized, "The yuan, undervalued on a real trade-weighted basis, especially against the dollar, is likely to appreciate." The bank noted that this appreciation might counterbalance the effects of tariff reductions. Initially, Goldman Sachs predicted the yuan would weaken to 7.35 against the dollar over the next 12 months, but the latest projection represents a downward revision. In the past month, the yuan has appreciated by 1.24% against the dollar and gained 0.31% in the last five trading sessions. # BNP Paribas Supports Bullish Yuan Forecast BNP Paribas Asset Management concurs with Goldman Sachs’ positive outlook on the yuan's prospective performance. Rick Cheng, a bond portfolio manager at BNP, remarked, "If the dollar continues its weakening trend, the yuan has potential for further appreciation." Cheng also highlighted that a stronger-than-anticipated Chinese economic growth rate, exceeding market estimates of 5% to 5.5%, could greatly enhance the yuan's strength. Additionally, it's crucial to note that China operates two distinct yuan systems: the onshore yuan (CNY) for domestic transactions and the offshore yuan (CNH) for international trade outside mainland China.