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China Currency and Less Manipulation

Kruger_Man

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#1
We all know that China will continue to artificially suppress the value of the Renminbi. But they claim that they will let it appreciate slightly. My guess is that they want the people to China to realize some increase in standard of living, in order to appease the masses somewhat.

How much do you think they will let it appreciate relative to the dollar? 1%? 2%?

And if we know that it will appreciate, albeit slightly, what are the arguments against buying a bunch of Yuen/Renminbi and just making a free 1 - 2% return? It beats most savings accounts these days...
 

Argent Dragon

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#2
I'd say 1-2% is a fair range. However, wouldn't you be better off sticking your dollars in a CD at a rate of 2-4% ??? That is unless one thinks a CD isn't safe for putting money into and the fear of locking in your funds for a year or two bears too much risk.
 

Kruger_Man

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#3
I'd say 1-2% is a fair range. However, wouldn't you be better off sticking your dollars in a CD at a rate of 2-4% ??? That is unless one thinks a CD isn't safe for putting money into and the fear of locking in your funds for a year or two bears too much risk.
I wasn't sure if CD's were paying 2%-4%. I don't accept interest, but nonetheless I thought interest rates were lower than that these days.

Anyway, I'm mostly worried about bank fees. A 1-2% return might not cover the costs of making the buy. What kind of volume would be necessary to make that work?
 

Argent Dragon

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Argent Dragon

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#7
To further clarify, I've yet to see a solid 4% which is why I had a range of 2-4%..........my Credit Union is just under 3% and I think ING offers 4% but I'm not sure what strings are attached. There might be a minium amount required like $10k+ or something.
 

andial

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#8
How much do you think they will let it appreciate relative to the dollar? 1%? 2%?
The Yuan will appreciate 15 to 20 percent verses the dollar over the next two years. This is the ETF you want to buy to take advantage of the move.

http://finance.yahoo.com/q?s=cyb
 
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#9
The Yuan will appreciate 15 to 20 percent verses the dollar over the next two years. This is the ETF you want to buy to take advantage of the move.

http://finance.yahoo.com/q?s=cyb
No thanks on the Yuan! China has some massive crap going on economically behind the scenes. Bad loans, bloated stock prices, a land price bubble about to pop, etc... I'd rather trust holding physical gold and silver to a Chinese currency ETF!