THE yuan is likely to see growth over the long term although economists are divided on the pace of its appreciation.

The yuan ended at 6.9231 against the dollar on Friday at the China Foreign Exchange Trading System, strengthening from a central parity of 6.9238. The yuan opened at 6.9372 yesterday and closed at 6.9231.

A rebounded US dollar may slow down the appreciation of yuan, traders said.

Some economists expected the yuan appreciation to speed up on the pressure of high inflation and the inflow of hot money.

Others expected the appreciation pace to slow down to relieve pressure on exports.

Lu Zhengwei, an Industrial Securities chief economist, said it was likely that the central bank would broaden the daily trading margin of the yuan to make it more flexible. The People's Bank of China announced on Saturday that it was raising the reserve ratio twice - each time by 0.5 percentage point - this month to soak up liquidity.

The yuan sped up its appreciation in the first quarter but slowed down in April and May.

The yuan has risen 19 percent since China de-pegged the currency from the dollar in July 2005. It has gained 5.3 percent this year.