chinese juan

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todd960

I have a question on chinese currency. I understand that their is no way to currently trade the juan. But when the chinese finally decide to float their currency, the juan is expected to increase in value by 50%. Can I just purchase juan from a bank now and exchange them once the juan floats and rises in value? Or do I need to have someone in china send me juan via mail and hold onto them? tia
 
I don't think you can purchase foreign currency in any large amount directly in the U.S., but I could be wrong. Also, there is limit on the amount of currency that can be brought into the U.S. if you purchased it elsewhere. Check with your bank or an international bank.
 
I have a friend in china that could easily send me juan. May not be exactly legal, but it sure seems like a good idea. If the chinese eventually float their currency as expected. All I know for sure is yuan convertibility will happen sometime between now and 2008, when China's introductory period into the WTO expires.
 
Quote from todd960:

I have a question on chinese currency. I understand that their is no way to currently trade the juan. But when the chinese finally decide to float their currency, the juan is expected to increase in value by 50%. Can I just purchase juan from a bank now and exchange them once the juan floats and rises in value? Or do I need to have someone in china send me juan via mail and hold onto them? tia
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You can open a Renminbi (Chinese Yuan) account with this online bank:

http://www.everbank.com/main.asp?affid=eb

FYI: There is a market in Non-deliverable Forwards (NLDs) that are traded by corporations and the large investment banks. It may be that Everbank is using this market to make Renminbi accounts available to international depositors.

Have fun!
 
Should we bank on the decoupling of the Dollar and Yuan? The Chinese are a coming superpower and may not be easily intimidated into surrendering a major trade advantge.
 
Despite falling in value against every major currency in the world over the last three years, the dollar remains unchanged against the Chinese yuan, which is one of the strongest currencies in the world. Strangely, the yuan exchange rate hasn't changed a penny since 1995. Thus, the big move higher in the yuan hasn't happened yet...but it will.

In fact, China's currency must soon trade freely around the world, as part of its World Trade Organization (WTO) admission. This sets up an enormous opportunity to profit as the yuan, like a rubber band stretched tight, will surely move higher against the dollar when it begins to trade.

Because the Chinese government - as an economic policy - keeps the yuan pegged to the U.S. dollar. The yuan - for now - isn't allowed to strengthen versus the dollar. This helps China's export economy and ensures billions of dollars end up in China's state bank as currency reserves
 
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