Ah, the delicate ballet of currencies-where numbers pirouette, economists whisper sweet nothings to spreadsheets, and the yuan, poor neglected Cinderella of the foreign exchange ball, may have been wearing a size-too-small slipper all along. 🩰✨
Enter Brad Setser, a senior fellow at the Council on Foreign Relations-yes, one of those solemn wizards who conjure doom and destiny from balance sheets-and Teresa Alves of Goldman Sachs, whose forecasts are nearly as reliable as death, taxes, and that one cousin who always brings kale to a barbecue. Both, in their infinite spreadsheet-driven wisdom, now testify that the yuan is not merely neglected, but dramatically underpriced against the mighty dollar. Imagine! A currency undervalued! Next, you’ll tell me my copy of Lolita is underappreciated at yard sales. 📚💔
Setser, with the gravitas of a man who’s seen too many trade deficits, suggests a 30% undervaluation-quite the gap, as if the yuan were wearing socks with sandals while the dollar struts about in bespoke Italian loafers. Alves? More cautious, yet still flirtatious with doom, pegs it at a range of 20% to 30%. (Such precision! One wonders if she uses a golden abacus.) More tantalizing still: Goldman Sachs labels a yuan rally by 2026 as one of their “highest conviction” views. High conviction! As if anticipating a sunrise-predictable, dull, yet somehow thrilling to those who’ve never seen one. ☀️📈
At present, the dollar lords over the yuan at a ratio of roughly 1:7. But Chinese officials, ever the romantics, dream of a world where parity dips toward 4 or 5. Not parity, mind you-just slightly less absurd. Liu Shijin, economic bard and advisor to the Middle Kingdom, delivered a speech in November with all the quiet fire of a scholar who once read Adam Smith for pleasure. He reminded us, in tones both pastoral and prophetic, that even the U.S. and U.K. were once humble manufacturing toddlers, their currencies as “puny” and unassuming as a garden snail at a lion convention. 🐌👑
And then, the poetic payoff:
“Chinese consumers can use the same amount of renminbi to enjoy more high-quality, affordable international products, thereby truly realizing the goal of becoming a strong consumer nation.”
How elegant! How aspirational! One envisions Beijing housewives triumphantly purchasing French cheese with the fiscal confidence of a Bond villain. “More caviar, Jacques-my yuan is strong!” 💼🧀
So here we stand: the yuan, long shadowed by the dollar’s swagger, may at last step into the light-not because of sorcery, but because economists said so in a report. And who are we to doubt the prophets of PowerPoint? 📊🔮
Stay tuned. Or don’t. The markets will do as they please, like cats, or ex-lovers. 😼💸
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2026-01-12 11:27