Ways to play the rising yuan
1. Yuan bonds
2. Yuan futures
Making the yuan more flexible
- Last week, the yuan hit a 17-year high, at 6.5817 yuan to the U.S. dollar, as Chinese President Hu Jintao met U.S. President Barack Obama in Washington.
- China announced it would let Chinese companies make investments overseas in yuan, expanding the currency’s role in the global economy.
- U.S. Treasury Secretary Timothy Geithner said the U.S. would consider Chinese requests for greater investment opportunities in return for movement on the currency and other U.S. concerns.
- Also last week, Bank of China allowed U.S. customers to trade the yuan for the first time. It is the first state-owned bank to do so. Some analysts say this is a necessary step in allowing the yuan to ultimately float freely.
Sonali Verma
1. Yuan bonds
2. Yuan futures
Making the yuan more flexible
- Last week, the yuan hit a 17-year high, at 6.5817 yuan to the U.S. dollar, as Chinese President Hu Jintao met U.S. President Barack Obama in Washington.
- China announced it would let Chinese companies make investments overseas in yuan, expanding the currency’s role in the global economy.
- U.S. Treasury Secretary Timothy Geithner said the U.S. would consider Chinese requests for greater investment opportunities in return for movement on the currency and other U.S. concerns.
- Also last week, Bank of China allowed U.S. customers to trade the yuan for the first time. It is the first state-owned bank to do so. Some analysts say this is a necessary step in allowing the yuan to ultimately float freely.
Sonali Verma
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