Why BNP Paribas’s Lo Sees Yuan at 6.65 by Year-End

The video discusses a contrarian perspective on the RMB, suggesting potential appreciation due to China's current account surplus and strong portfolio inflows. It argues against the anticipated deficit, highlighting effective capital controls and stabilization in Chinese sentiment, which reduce capital outflows. The balance of payments surplus is expected to support the RMB's strength.

What is the speaker's contrarian view regarding the RMB?

• It will fluctuate unpredictably

• It will remain stable

• It will appreciate by 3%

• It will depreciate by 3%

What is one reason the speaker believes China's current account will show a surplus?

• Weak portfolio inflows

• Increased import growth

• A strong export environment

• A decrease in GDP

How does the inclusion of Chinese assets in international benchmarks affect China's economy?

• It causes capital flight

• It has no effect

• It decreases portfolio inflows

• It increases portfolio inflows

What is the speaker's argument regarding capital outflows?

• Capital outflows are less than inflows

• Capital outflows are massive

• Capital outflows exceed inflows

• Capital controls are ineffective

What role do capital controls play in China's economic outlook according to the speaker?

• They have been ineffective

• They have stabilized Chinese sentiment

• They have increased capital outflows

• They have no impact