Chinese currency to rise by 25% against dollar

This was a central message of guest-speaker Tom Hobson, head of fixed-income strategies at Merrill Lynch Investment Managers in London, at the Asia Pacific-USA Chamber of Commerce conference in London last week. Hobson told delegates that with inflation struggles beginning, reform allows for FX flexibility in future.

He said the rational policy decision for the Chinese authorities to best manage the current situation would be to allow the renminbi to appreciate rather than risk potentially d