Is there any way to short the renminbi with very low interest rates for a long time
- Thread starter Randalli
- Start date
Me not a forexian, dunno, but maybe LongPut (or ShortCall) options...
B/c of the current situation (low interest rates in CN and high interest rates in the West), I think the Renminbi (CNY) will be bought much by Westerners, which then will catapult the CNY to the 2nd most used currency in the World, IMO...
B/c of the current situation (low interest rates in CN and high interest rates in the West), I think the Renminbi (CNY) will be bought much by Westerners, which then will catapult the CNY to the 2nd most used currency in the World, IMO...
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Buying into weakness may be a profitable long term strategy.
Don't use IMO or IMHO. It is screaming and detracts from an otherwise useful response.
The interest rate is controlled very high, which is not a good way to short for a long time
Yeah. There are a hundred ways to do this.
And no hedgefund does it because because despite the billions of dollars that could be earned, hedgefunds aren't interested in making billions in a pure arbitrage.
Sell in the futures market, cost zero, keep rolling at expiration.
https://www.cmegroup.com/markets/fx/emerging-market/chinese-renminbi.html#venue=globex
https://www.cmegroup.com/markets/fx/emerging-market/chinese-renminbi.html#venue=globex
That's not the only zero.
https://www.cmegroup.com/markets/fx...enminbi.settlements.html#tradeDate=08/25/2023
Trust in da shaet
China's current problems are caused by the current massive problems of the West:
b/c the West cannot afford anymore to buy big in China (due to high inflation in the West), then obviously this leads to export and unemployment problems in China...
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