How to invest in Renmibi

Discussion in 'Economics' started by trading1, Nov 2, 2009.

  1. Is it possible to (directly or indirectly) invest in the Renmibi? I did trade through Oanda at one point and did well but there was an astonishing interest rate to pay. Stocks don't seem that responsive to the currency rate, are there any other options?
    Thanks in advance for any help
     
  2. sjfan

    sjfan

    1. Renminbi is pegged. so there's not much of a point (unless you are speculating that the chinese govt will allow it to float or strengthen)
    2. Capital control. Renminbi is not freely convertible
     
  3. Do you want to take a view on the strengthening of the currency or do you want to actually invest in China?

    If it's the former, there might be some FX shops that would offer RMB NDFs. You could take a view on just how much RMB appreciation the politics of the situation might permit.
     
  4. take a trip to hkg, open up a bank acct denominated in renminbi. It can be done easily.
     
  5. sjfan

    sjfan

    ... and then try to repatriate that account and see how easy it is...

    moreover, what have you accomplished exactly? exchange into rmb at the ask and then out at the bid... of a pegged currency?


     
  6. harkm

    harkm

    There will be intense pressure from China's trading partners to let their currency rise.
     
  7. I believe Wisdom Tree Funds offers an etf that tracks the value of the renminbi. Its a fairly liquid etf.
     
  8. I appreciate all the advice offerred, I'm looking into the ETF: CNY. It hasn't done much to date but theres an argument that it might in the future.