14th December 2009, 11:10 AM
Does it make sense to buy RMB now?
Have a question regarding the chinese yuan. Been thinkign about this for a few months now, kept procrastinating but decided to head to the bank yesterday (I work in China at the moment) and changed some USD to RMB. As my pay is in USD, I am trying to diversify my forex savings and reduce the exposure to US dollars.(it is upsetting to see the depreciation over the years).
Ran some checks on historical currency converters and for the last 2 to 3 years, the USD/RMB have been relatively pegged constant at around 6.8 (used to be 8+ earlier in the decade). I thought with so many reports that the yuan is undervalued against other currencies, and with the decent interest rates (1.98% for 6 months), it might be worth keeping some RMB for the longer term? Ok, I know 1.98% hardly beats the inflation and the money is better off earning dividends in some stocks but this is more for my portfolio of cash holdings.
I wonder if there are others doing the same too...converting a portion of your cash holdings to RMB and hoping it will appreciate in time?
14th December 2009, 12:06 PM
Re: Does it make sense to buy RMB now?
same here , have been reading on the news saying that yuan is even undervalued by 35% , china still rely alot on exports for their revenue. right now even US cant do anything about it thou some speculate that the yuan will rise on 2nd qua next year but progress will be slowly and steadily , maybe is good to have some RMB with us for investments.