The Chinese yuan is relatively insulated from Middle East developments due to
China’s modest energy import burden, according to RBC Capital Markets’ Abbas
Keshvani.
He estimates net oil and gas imports at about 1.7% of GDP, while safe-haven
demand for Chinese government bonds—supported by low inflation and accommodation
policy—has kept yields anchored near 1.8%.
RBC forecasts USD/CNY at 6.82 in 2Q, 6.80 in 3Q, and 6.78 in 4Q. The dollar was
Last at 6.8207 yuan, down 0.1%.
