trade Renminbi at IB

Discussion in 'Interactive Brokers' started by Collagen, Mar 25, 2018.

  1. Collagen


    I know that this question is very noob: I would like to take some exposition to RMB. Which symbols are available at IB through forex or futures to trade RNB/USD? CME is out of equation since is not traded at all.
  2. maxinger


    try HongKong futures exchange Chinese renminbi futures.
    But i see the volume is rather low.
  3. JSOP


    Renminbi is NOT an openly tradable currency. China has only allowed it to float to a basket of currencies but it is still NOT open to trading like USD or AUD, yeah talking about open trade when its currency is not even tradable. LOL With its economy being now the 2nd largest economy in the world, its value should be at least almost on par with USD but it is still only 1/ of USD. It complains about a trade war from USA with the $50 billion tariffs when in fact it's launched a currency war for decades worth TRILLIONS.

    Anyhow, the most you can do to trade it is trade its proxy the Hong Kong CYN and last time I checked you can only trade it with Oanda. So dunno about IB. You have to check with them.
  4. Collagen


    Thank you both for the answers.

    Jsop, I agree in part with your view because at the end if the US left the door open to this "unfair" trade practice probably Us had some return from that thing like cheap stuff for retailers and your industry. At the end following this view one could guess why Fangs does not pay taxes in the countries where they are selling... Things are going to change though as the escamotage of the head office in tax paradise countries is not working anymore.

    I believe You have a clever president that wants to protect your military industry and following last actions avoid steal of intellectual property. However, It is worth to note what happened to the financial markets last time the US was involved in a trade war.. ( not sure if under Bush or Reagan presidency but I have printed in my mind the chart) After few months US decide was not the case to push further..

    Anyway If Chinese will decide to retaliated will probably dump US treasury bonds with all the consequences ..
  5. JSOP


    True just like in any wars, military or otherwise, 2 things are ALWAYS true:

    1. The party who get hurt the most is the ordinary people, in this case, both in USA AND in China, who will lose their jobs, lose their homes, even lose their lives.

    2. Nobody really wins at the end; everybody loses, USA, China and definitely the world at large.

    Yes US will be very sad :( when China's holding of 25% of 10% of the entire US public debt = 0.25 * 0.10 = 0.025 = 2.5% of the debt is dumped. But then again, if US does default, China won't be able to get a piece of USA anymore. No Golden Bridge for you!!! LOL

    Good luck with your Renminbi trading!
  6. The ticker you're looking for is CNH.
  7. your statements is incorrect. It is open to trading and conversions. The difference is that Chinese are restricted from transferring out large amounts. When the RMB is outside of China it becomes CNH (offshore) vs. CNY (onshore). There is often a slight difference in rates but the spreads on CNH are very tight. At IB you can trade CNH and get physical spot which you could even withdraw. The Hong Kong banks also offer conversions but at much wider spreads. HK exchange has a future, so does SGX and CME. I haven't looked at the futures in a while but last I looked liquidity is there on the futures but not great.

    Another way to get exposure to China currency is to look at some of the ETFs - I like the Kraneshares or better yet, buy China stocks via the HK/China Connect directly which trade in RMB.
    truetype likes this.
  8. JSOP


    Ok this is new, something I didn't know. Then I have a question, if you are able to trade the RMB freely into another currency WHY is there still a need for an onshore and offshore RMB? What's the difference between onshore and offshore RMB? Can CNH not be used inside China? If so, then the spread wouldn't exist because these spread would've been arbitraged away?
  9. There are restrictions from taking money out of China and the CNH doesn't have the same locked band. There is a ton written up on this on the internet. You can start with a google search of "CNY vs CNH". Here's a start:
  10. oneloop


    Would that even make sense? What would be the effect of dumping US treasuries on USD?
    #10     Mar 31, 2018