The Chinese currency a week or so ago suddenly switched from being inverted (deferred months lower) to "normal" (deferred months higher in price). Can anyone explain this? Is it just market expectations? Whatever happened to "interest rate parity." During all of this time the spot rate for the renminbi has not moved much. I have been short the renminbi (aka yuan) for some months in anticipation of an eventual competitive RMB devaluation. I have been losing money all this time as the deferred months rise in price as they become current. (It is only a small position among others so it is not a significant loss). The new slope appears to make it much more attractive to short the renminbi, (I am used to talking in terms of the futures price which is quoted as CNYUSD. If you are more used to forex USDCNY then the graphs would of course be the other way up). Any comments?