􀀗 Our trip onshore suggests that RMB will
see less appreciation and more volatility
in 2012
􀀗 Internationalization will be the key focus
of RMB policy
􀀗 RMB remains a core long
We report back from a recent trip to Beijing to test our
RMB views for 2012. We maintain our expectation for a
more modest amount of RMB appreciation in 2012 of
roughly 3%. However, we expect more two-way volatility.
A short-term period of some modest RMB depreciation may
also be possible, given the right conditions. Meanwhile,
cross-border RMB channels will continue to be developed.