According to him, until tensions between the two countries cross borders with incidents such as the cancellation of the first phase of the deal or broader sanctions, the Chinese yuan is in a very good situation and could strengthen its positions over the next three to six months, Radio China writes.
Amid escalating tensions between the world's two largest economies, China's yuan depreciated against the greenback. The offshore yuan last Wednesday reached 7.17 per dollar, its weakest level since September last year, when the US-China trade war was peak.
The latest conflicts between the two countries are caused by new US measures against the Chinese technology industry and the US response to China's national security law in the Hong Kong Special Administrative District. On May 22, the US said it would add 33 Chinese companies and institutions to the “black” economic list.
China's yuan to jump three to six months
The Chinese yuan could return to the course of 6.8 yuan to 1 U.S. dollar by the end of 2020 if there is no further escalation in China-U.S. relations, UBS Global Wealth Management's Dominic Schneider said in an interview with CNBC.