Investment houses have begun publishing predictions for China"s yuan next year after the currency looked set for a second straight annual gain in 2021 on growing trade surplus, strong export growth and ample dollar liquidity onshore. The yuan has strengthened about 2.5% against the dollar so far this year, becoming one of the best performing Asian currencies, while its trade-weighted value against major trading partners (.CFSCNYI) was hovering at six-year highs by gaining more than 8%. Here is a summary of some forecasts for the Chinese currency: INVESTMENT HOUSE end-March end-June end-Sept end-Dec Goldman Sachs 6.2 (12-month f"cast) Morgan Stanley 6.4 Barclays 6.5 Standard Chartered 6.3 6.35 6.4 6.5 ANZ 6.37 6.35 6.32 6.3 SEB 6.3 UBS Global Wealth Management 6.55 6.6 MUFG 6.4 6.45 6.5 6.55 KEY COMMENTS: ** Goldman Sachs "We still think some targeted tariff exclusions by the U.S. remain a possibility in coming months, although these would unlikely be very large in a macroeconomic sense and so would represent only a marginal tailwind to CNY ... We are also constructive on CNY, mainly on inflow potential to China as global investors remain under-invested in CNY assets." ** Standard Chartered "A new global COVID resurgence may delay China"s border reopening, underpin its balance-of-payments (BoP) strength, and reduce the growth divergence between China and major Western economies in H1-2022. Possibly sustained accommodative liquidity conditions in developed markets could prompt stronger capital inflows to China on higher rates and more muted inflation." ** ANZ "With limited avenues for outflows and the absence of outbound Chinese tourists, CNY has been supported by strong trade surpluses and portfolio inflows, particularly into the bond market. The authorities appear broadly comfortable in allowing the currency to appreciate, which has helped to play an important stabilising role in the region. We expect this trend to continue in 2022." ** SEB "At this point, we see no compelling reason for the authorities to aggressively dampen the yuan. Although the trade-weighted RMB Index has risen around 8.3% year-to-date, it has not hampered export performance. This is in stark contrast to the contraction in exports throughout 2015." ** Oxford Economics "China"s current account surplus should remain solid, given the resilience of China"s role in global supply chains and downward pressure on imports from the property downturn. Also, the likely continued net FDI inflows should support the CNY. But relatively muted growth and a lower interest rate differential with the U.S. may exert some depreciation pressure." Reporting by Winni Zhou and Tom Westbrook; Editing by Subhranshu Sahu