Chinese currency?

Question

Is anyone familiar with the Chinese currency right now? It seems to be appreciating greatly agianst the US dollar. It seems like this would be a good investment?

Answer 1

In all free markets, price is determined by supply and demand. In China, the price is determined by one small group of people in gov't.

After being pressured by the US and others, China finally tied the Yuan to a basket of other currencies and will allow the yuan to float "freely" by only a certain amount per month or quarter. But they won't tell anyone which currencies are in the basket, so essentially, they can say whatever they want, and still choose the value of the yuan arbitrarily.

This is no conventional "investment." The yuan is wild speculation, with no way to measure possible outcomes or risk. Neither is there good liquidity or volume.

This is not what most people would consider a "good investment."

Answer 2

The chinese government do not like people speculating on their currency, which is why it's price is fixed and adjusted periodically by the government. As a result, its price does not move significantly, so I would wait until the policy on Chinese currency changes and instead invest in something you have a chance of making money

Answer 3

Worst case, you won't lose because the yuan rate is pegged to the US dollar. It will go noplace but up IF the Chinese government will let it. Bear in mind that maintaining the status quo is good for China because it makes their goods cheaper here, so they sell more.

All things considered, it is probably not a bad idea, but I think I am going to stick with gold and silver (easier to buy and sell, and less of a spread between buy and sell prices)

Answer 4

being much stronger than the us dollar, it will be better for investment. presently it stands at : 1 Chinese yuan = 0.126355159 U.S. dollars.