June 24 (Reuters) – The yuan is likely to rise about 3 percent against the dollar by the end of this year, assuming the euro stays around current levels against the U.S. dollar, Li Daokui, a central bank adviser, said on Thursday.
Li, one of three academic members of the People’s Bank of China monetary policy advisory committee, said the reform of the exchange rate regime announced at the weekend would help tame inflation.
But, in an interview with Reuters, Li said depegging of the yuan would have a limited impact on China’s interest rate decision-making.
Li, an economics professor at Tsinghua University in Beijing, also said freeing up the yuan was unlikely to trigger big inflows or outflows of capital.
The PBOC said on Saturday that it would once again let the yuan move more freely after having kept the currency more or less pegged to the dollar for two years to provide stability for exporters during the global downturn.
The yuan CNY=CFXS drifted slightly lower on Thursday to around 6.8141 per dollar, representing a rise of about 0.2 percent since the long-awaited policy shift. [CNY/] (Reporting by Chen Min and Alan Wheatley; Editing by Chris Lewis)