RMB to outperform within the region by next year

By the end of 2016, USD/CNY is expected to be testing 7.0 due to a mix of cyclical USD strength as well as domestic factors. Since the devaluation, PBoC have been intervening to maintain the RMB's stability. 

This intervention cannot continue indefinitely. At the current rate of reserves depletion, it is estimated that China has approximately six months before running up against the upper bound of reserve adequacy. 

"Narrowing GDP growth and interest rate differentials also argues for a higher USD/CNY. By the end of 2016, the benchmark 1-year lending rate is expected to be at 4.10% and the RRR (for major banks) to be at 15.5%. Inclusion in the IMF's SDR basket next year should help RMB outperform within the region however", says RBC capital markets.