Faber: Yuan Will Double In Value Against Dollar

China's yuan will double in value against the dollar during the next decade, says economist Marc Faber, publisher of "The Gloom, Boom & Doom Report."

"It's good for China to have a strong currency, but I don't think it will be good for the property and stock markets, because in the short term, China is less competitive," Faber says.

“The yuan should be twice the current level, it should appreciate by 100 percent over the next 10 years.”

Faber says the Chinese currency could appreciate between 5 percent and 10 percent against the dollar this year.

However, Faber told Bloomberg that China’s “excessive” credit expansion and surging real estate prices are “danger signals” that growth is peaking.

“There are some symptoms of a bubble building in China, with the increase in foreign exchange reserves, rapidly rising property prices,” Faber says. “From here on, the China economy will slow down regardless,”  he says.

“Whether it will crash this year or later, I don’t know.”

Templeton Asset Management emerging markets executive chairman Mark Mobius believes the demand for housing in China will withstand curbs on lending imposed by the government.

“We don’t see fundamentals of the property industry will change much because of these new policies,” Mobius told Bloomberg.

“We are in general still light on Chinese developers and if this correction brings valuations to more attractive levels, it would be a good opportunity for us to step up our positions.”