BofA Merrill Lynch's chief economist: the value of the renminbi is not undervalued

Note: Timothy Bond, chief economist for Asia-Pacific Merrill Lynch, said the renminbi's valuation was normal and not undervalued as many politicians have said. (Source: Sina Finance Xiao Ying) April 16 Evening News in an exclusive dialogue with Sina Finance, BofA Merrill Lynch, Asia Pacific chief economist, said the renminbi's valuation was normal and not undervalued as many politicians have said.　　He expects the renminbi to continue to appreciate in the future, and will reach a level of RMB 6.3 to 1 by the end of the year. Timothy Bond attended the 2011 Annual meeting of the Boao Forum for Asia and participated in the BOAO debate on the theme "Certainty and uncertainty". He told Sina Finance that since the appreciation of the renminbi against the dollar in 2005, the exchange rate reform of the renminbi has changed a lot, and the exchange rate has risen by 18%.　　He believes the renminbi is now in a normal valuation and is not undervalued, as many politicians say. He predicted that the renminbi would continue to appreciate at a slower pace, with a 6.3 renminbi exchange of 1 dollars by the end of the year, and could be overvalued in the future. "China's currency reform has a long way to go, but it has taken the right step on the long road." "The appreciation of the renminbi could lead to problems, such as cost changes and trade issues," says Timothy bond. "China's first-quarter trade deficit since 2004 was very surprising," he said, but he still thinks there will be a trade surplus by the end of the year, but the trade surplus will be less than many people think because of higher commodity prices. (Xiao Ying from Boao)