RMB to appreciate 2%-3% against USD in 2013

BEIJING - China's currency, the renminbi or yuan, is expected to appreciate by 2 percent to 3 percent against the US dollar in 2013, global banking giant Deutsche Bank forecast in a recent report.

It estimated that cross-border trade settled in renminbi will surge about 30 percent to 4 trillion yuan ($635 billion) in 2013, accounting for 15 percent of China's total foreign trade.

Offshore renminbi business will also increase due to potential growth in offshore financial hubs like London, Taiwan and Singapore, the report said.

Chinese policymakers will focus on further liberalizing the capital account in 2013 to ensure adequate liquidity on the offshore renminbi market, said Liu Linan, senior strategist with DB China.

The government is also expected to choose clearing banks for renminbi business in Taiwan, Singapore and possibly London, said Liu.

renminbi fixed-income trading and other renminbi business are likely to be introduced in Taiwan in the near future, Liu said.

The renminbi gained 23 basis points to 6.2885 against the US dollar on Tuesday, according to the China Foreign Exchange Trading System.