Famed investor and co-founder of the Quantum Fund, Jim Rogers said in Shanghai that he expects renminbi, China’s currency, to appreciate 300, 400 or even 500 percent in the next 20 to 30 years, stunning and prompting a debate in the forex industry.
Rogers also indicated that the yuan may replace the dollar one day, Daily Economic News, a Chinese financial and economic news portal, reported.
“If anyone wants to sell renminbi, I’d be willing to buy,” Rogers said. Compared to the yuan’s value in 2005, Rogers expects it to appreciate by as much as 500 percent in the future.
Chinese forex experts weighed in on Rogers’ statement.
“30 years is a long time, it’s hard to predict renminbi’s movement. Rogers’ estimate is too high,” Tan Yaling, the president of China Forex Investment Research Institute, told Daily Economic News. “Renminbi’s exchange rate is already too high, and has already affected China’s economy.”
Ding Zhijie, the president of the School of Banking and Finance at the University of International Business and Economics, agreed with Rogers that the yuan will be a strong currency in the next 30 years, but it’s hard to say whether it will replace the dollar.
“The yuan will be an important international currency. As China’s economy continues to grow, as long as inflation is under control, the yuan will appreciate,” Ding added.