Xi faces calls for stronger yuan in currency debate

IN WELL-CONNECTED circles within China, the yuan’s persistent weakness is increasingly being seen as an obstacle to the country’s growth.

- BLOOMBERG

A rising number of Chinese economists and former central bank officials are arguing a stronger currency is needed if the country is to rebalance the economy away from exports, boost tepid consumer demand and reduce trade conflicts.

Open discussions about such a sensitive subject as currency management are notable in President Xi Jinping’s China, where policy decisions are typically opaque. The calls are fueling speculation policy makers will allow broader appreciation in the managed currency, which Goldman Sachs Group Inc. estimates is undervalued by a quarter relative to economic fundamentals, although few expect a substantial rise.