China yuan to rise 3-5 pct a year, no one-off reval -researcher

BEIJING, June 1 (Reuters) – China is likely to let the yuan rise 3-5 percent against the dollar per year in coming years but it will keep the door shut on a another one-off revaluation, a central bank researcher said in comments published on Wednesday.

Wang Yong, a professor with the central bank’s training school in Zhengzhou, wrote in the Economic Information Daily that the yuan exchange rate would be more volatile in the future.

“China’s yuan will maintain modest appreciation at an annual rate of 3-5 percent amid two-way fluctuation, but it is unlikely to see another significant revaluation,” Wang said.

The dollar/yuan exchange rate may rise or fall 0.5 percent from the mid-point each day.

The central bank set the yuan’s mid-point at a record high for the fifth straight trading day on Wednesday at 6.4837 against the dollar, stronger than Tuesday’s historical high of 6.4845.

The external pressure on Beijing to permit a faster appreciation of the yuan has eased somewhat, and the U.S. Treasury Department did not name China as a currency manipulator in its semiannual report issued on Friday.

But the U.S. Treasury said Beijing still needs to allow the yuan to rise much faster in value.