RMB Forward, is it for real for fake?

Discussion in 'Forex Trading' started by qll, Dec 1, 2006.

  1. qll

    qll

    http://www.icbc.com.cn/e_other/quotation2.jsp
    1Y 764.69 761.63 767.75 2007-12-05
    Note: this rate is the initial quotation of ICBC, deal price is depending on the actual trading rate of local branches.

    rmb is traded at 7.83 now.
    does this forward mean people see the rate to be 7.64 in 1 year?

    what is this forward for, since rmb can not be exchanged freely and government controls the rate by hand? then who will honor the forward contract?