Jim Rogers, one of the world’s most famous investors, recommends buying the Chinese yuan as the currency’s value will surge over time.
“I expect the renminbi to double, triple, quadruple over the next few decades,” Rogers said on CNBC. “Just as the Japanese yen…went up 400% over the past few decades against the dollar, the renminbi will too.”
Rogers, who correctly predicted the commodities rally in 1999, also said that when it comes to letting the yuan float Beijing should not manage the currency at all. However, he pointed out that continuous pressure from the U.S. is not going to help.
“I would leave the Chinese alone. Slapping people in the face…in public is not a good way to get things done. And the other side has to save face, and they have to do something…The chinese know they have to have a floating currency. They know they have to let things change, but slapping them in the face [U.S. Congress wants the Obama administration to designate China as a currency manipulator] is not the way to do it,” Rogers added.
