anyway, the answer is zero. CNY pays no interest. Just like JPY pays no interest. so, if you take a buy position on CNY, you'll get whacked daily for interest.
how are you supposed to take a position? there is no real vehicle outside of an NDF..(and I can practically gurantee you 90% of the people on ET don't have access to)..which is the whole point of this thread...by the way the 6M CNY Deposit is 2.070%
USD/SGD is considered a good proxy for CNY and MYR (who also revalued)..but a lot of HF's stayed away as it is pegged and rather illiquid (total avg daiy spot, fwd and option turnover of $US3bln) ..many got squeezed out but interestingly it has held up a lot better than JPY post the reval
Here's what Stiglitz has to say in latest article in FT: There is a myth of mutual dependence: China needs to export goods to the US, which needs Chinaâs money to finance its deficit. But China could easily make up for the loss of exports to America â and the wellbeing of its citizens could even be improved â if some of the money it lends to the US was diverted to its own development. China has huge investment needs. If its government is going to lend money, why not finance its own development? Why not fund increased consumption at home, rather than that of the richest country in the world, to pay for a tax cut for the richest people in the richest country, or to fight a war which most view as anathema? But the US could not so easily make up for the gap in funding without large increases in interest rates, and these could play havoc with the economy. http://news.ft.com/cms/s/79797f04-fe00-11d9-a289-00000e2511c8.html PS: Stiglitz is University Professor at Columbia University and was awarded the Nobel Prize in economics in 2001. And was economist in IMF until 1999.
who is willing to pay you 2.070% on a CNY deposit? PBC? I mean for a straight spot renminbi deposit. Confucius say, BS77 talk out of his @$$.