Chinese Yuan

Discussion in 'Forex' started by enkidu007, Jun 11, 2005.

  1. I have some risk capital and would like to buy some chinese yuan. Anyone know where I can go and do this in a small amount?

  2. Hayek


    Do you have ways to covert CNY back to dollar after CNY reval? CNY is not an free exchangable currency in capital account.

    USD/CNY NDF can be a good choice. But it will take you some time to find a broker having that product and the initial deposit may not be small.
  3. jrkob


    I'm living in Hong-Kong, most local banks now offer to open CNY-denominated saving accounts.

    Unfortunately I believe the max amount you can deposit is 10,000 CNY. Unless this changed recently.

    Contact your local HSBC branch, may be they're offering CNY saving account in the US too, I guess your CNY-saving account would be opened out of HK.

    I personally don't speculate on the appreciation of the CNY because (1) my personal opinion is that it's still going to take a long time before a reevaluation of the CNY, and (2) reevaluation is unlikely to be very big at the beginning, we're talking about less than 5% here.

    I, again personally, think the potential return isn't that great.
  4. Techguy


    My understanding is that China needs to make the Yuan publically tradeable by 2007 due to a WTO agreement.
    Speculation was that it would be fixed to a basket of Asian currencies rather than the USD or EUR.

    Is this correct? If so what is the latest on this?
  5. Hayek


    If there is a basket, USD will be the biggest component of it. Then will be JPY, EUR and HKD. South Korean Won and Singapore Dollar may be also included.