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Spotlight: Jim Rogers holds China's yuan solid

Xinhua, March 18, 2016 Adjust font size:

U.S. investor Jim Rogers has stood out as a vocal supporter of China's yuan in view of China's stable economic fundamentals.

China has been the most successful country in the world over the past 30 years and the yuan has been the strongest currency in the world since 2005, said Rogers in a written interview with Xinhua in Singapore.

"I own RMB (yuan) and am not a seller," said the prominent international investment guru. "Anything that has been the strongest of anything for 11 years will have a correction and consolidation... If it goes down for a while, I will buy more."

Asked about the short-term volatility of the yuan earlier this year, Rogers said: "There are always short sellers everywhere in the world. Many of them get it wrong and suffer, so ignore them."

Rogers, who was a co-founder of the Quantum Fund and creator of the Rogers International Commodities Index, also supports the process of internationalization of the yuan.

"No country can be the world leader without a freely convertible currency and open markets," he said, "complete internationalization will bring many benefits to many in China and to China."

As for the Belt and Road Initiative brought up by Chinese President Xi Jinping in 2013, Rogers said: "Geography has changed very few times in history. Shipping and exploration changed geography a few hundred years ago. Likewise the railroad. Then the telegraph and telephone changed geography."

"Now the Belt and Road is an exciting change of geography. Many parts of Asia and Europe will now change in dramatic ways as will some parts of South East Asia such as Myanmar. Many will boom," he said.

As for China's 6.9-percent GDP growth rate last year, Rogers said: "Everyone will have slower growth the next couple of years because of the problems caused by the staggering debt and money printing originating in the United States and copied in most of the developed world."

"China's major customers are having problems so the parts of the Chinese economy dealing with countries having problems will also have problems as a result," he said.

"Likewise sectors with overcapacity such as property in some areas will suffer. Companies with too much debt will suffer as the world slows. Some in China will continue strong such as the companies cleaning up the pollution," he said.

Rogers also urged China to innovate quickly.

"Everyone needs constantly to innovate in everything or they fall behind the world. Some obvious things include finance and investment where other countries are more innovative because they are more open and competitive for historic reasons. China is moving in this direction." Endi