(Yicai Global) Aug. 12 -- Global liquidity is to enter a long-term tightening cycle due to inherent flaws in the international monetary system, leaving room for the Chinese yuan to appreciate, Mr. Yao Yudong, departing director of the People's Bank of China Research Institute of Finance, said in a research report.
The appreciation of the US dollar is also set to be a long-term trend. This will impact emerging markets in particular. For commodities exporters such as Brazil, Argentina, Chile, Indonesia, South Africa and Russia, persistently low global commodities prices have cast a shadow over their economy and the situation is unlikely to improve in the short term.
Mr. Yao joined the central bank in 2011 and was appointed head of its Research Institute of Finance in January last year. He recently resigned to take up the position of chief economist at Dacheng Fund Management Co.