According to Jim Rogers (of Quantum Fund fame) China’s yuan has further to climb against the dollar and could rise by up to 500 percent over the next 20 years.
Is anyone here looking to get long the Yuan?
Oanda offers trading in the USD/CNY pair, although the spread is a static 40 pips, and the interest rate is at -4.5%
There are probably better alternatives for investing in the Yuan over the long term, I’ll post my findings…
Wow 40pips is kinda harsh for short termers. Look forward to hearing your research on this as well as others inputs.
Could you post a picture of a daily chart? Just interested in seeing it.
what if we all just go to the bank and exchange american dollars for chinesse, put it in a safety deposit box and wait. The banks can’t charge you anything for that.
don’t anybody go and do that w/out checking with a super trader first…does anyone know if that would work.
hey,
It would work, but for it to be effective your going to have the equivelant of your trading amount for example 1 standard lot �100,000 in cash to make the exchange over the counter
Oh and over here they always sr�ew you on the spread. Your going to have to convert it one way and then the other when you need the money!
your better off finding a broker that does “no swaps” i.e either doesnt pay interest nor charges it.
N
Right, you could for example open a bank account in Hong Kong and simply exchange dollars for Yuan and deposit them there. You do not have to be a Chinese citizen.
You could also buy CME Yuan futures and let them roll over - but that way you would not benefit from the interest of a bank deposit and you’d also have to pay interest on the margin…
do you know a legitimate bank? What if there are political problems between china and the united states? What if you just take cash to the currency exchange and turn it into chinese currency and put it in a safety deposit box?
I know of a guy that uses [I]Agricultural Bank of China[/I] - but of course do your research before doing anything!
Hi there.
Imo the only way to actually profit from the appreciation of the yuan is to buy chinese assets. Otherwise your “haircut” ala oanda eats away any pricing advantage of buying currency. There is always the chance that one day the HKD will unlock from the usd and actually
Hello,
dannybly:
Just thought I’d share this with you:
The spread on GBP/ZAR (South African Rand) is 500 pips!!!
Maybe that will make you fell better!!!
Just remember though: it’s all ‘relative’. In other words, just looking at the GBP/ZAR as an example: while the spread may sound ridiculous this pair moves in ‘leaps and bounds’ i.e. yesterday it the net change was 3653 pips and it moves in this way all the time everyday.
It also sounds like you were looking at long term so 40 pips over a couple of weeks, months, or years, is nothing in the bigger picture of things.
Oh, and by the way, exchanging USD for CNY and putting the cash in a safety deposit box is not going to nett you anything close to trading the pair. Remember: LEVERAGE!!!
Imo the only way to actually profit from the appreciation of the yuan is to buy chinese assets.
I take your point here - another idea to take advantage of the economic expansion in China would be to invest in the commodities that they will increasingly need - such as copper etc.
Thanks. What are these assets and where do you invest in copper?;):
USD/CNY is the US Dollar/Chinese Yuan pair…
Copper futures trade on the New York Mercantile Exchange (Nymex) 
This pair seems to be in a slow steady downtrend.I have never pulled this chart up.Looks as if it is falling a few hundred pips a week or more,Any fundamentals predicting this pair to change direction?If not maybe hop on for a little ride and collect some dough!
