Short the Yuan - Suffer heavy losses

[LacesOut]

Says Xiao Yuanqi, the spokesman for the China Banking and Insurance Regulatory Commission (CBIRC).

Mmmmmm hmmmmmm....

If it breaks the lucky 7 number and trades there.....kiss it goodbye. Let’s see how aggressively they defend it.

Reminds me of a story in Market Wizards about a currency level being breached when a CB figure said it wouldn’t. And then whoooooomp.

 

[Pension_Admin]

China wants the Yuan to be low to increase export but not too low to trigger a hyperinflation. That said, China still hold a bit more than a trillion dollar in US debt. As long as China is politically and economically stable, they should be able to use the US debt to defend the Yuan.