dogboy Posted January 21, 2011 Report Share Posted January 21, 2011 china is now allowing foreigners to open savings accounts in the bank of china- up to $20,000 worth per year their current policy is to keep the yuan artificially low to further stimulate their already booming economy, whick expanded about 10% last year alone domestic inflation is barely under control, and a lot higher than it is here but last year the yuan went up 3.5% versus the dollar anyway some pundits think it is only a matter of time before it goes up substantially versus other currencies there is almost no trading in the yuan in international currency exchanges right now might be a smart move Link to comment Share on other sites More sharing options...
TheSpaniard Posted January 21, 2011 Report Share Posted January 21, 2011 I don't put a lot of trust in our numbers we get here in the US from our Gov, I have zero trust for the numbers China lets out....... That said, their currency is undervalued because of the demand for Yuan on an open market format. Right now, the way they are letting it dribble around with total control I do not trust it one bit. I do not see them letting the currency go free or substantially higher without the US putting some massive heat(tax everything 25% coming in from China) and we just don't have the leaders to even step in that direction. John Create instead of living off the buying and selling of others....... Link to comment Share on other sites More sharing options...
Kings over Queens Posted January 21, 2011 Report Share Posted January 21, 2011 I don't profess to understanding the economics of currency trading, but from a purely patriotic standpoint isn't it bad enough that as a country we are enriching China by buying so much product from them. Seems like another nail in the coffin if we as American's start investing in their currency. Or am I wrong thinking that way? #otterlivesmatter Link to comment Share on other sites More sharing options...
TheSpaniard Posted January 21, 2011 Report Share Posted January 21, 2011 I don't profess to understanding the economics of currency trading, but from a purely patriotic standpoint isn't it bad enough that as a country we are enriching China by buying so much product from them. Seems like another nail in the coffin if we as American's start investing in their currency. Or am I wrong thinking that way? Well, I was thinking the same thing as well but in the business/WS world you'd sell you mother for a hundred bucks if it made the bottom line.... John Create instead of living off the buying and selling of others....... Link to comment Share on other sites More sharing options...
Rustyjigz Posted January 21, 2011 Report Share Posted January 21, 2011 there is almost no trading in the yuan in international currency exchanges right now might be a smart move Are you cheer-leading this?!?! Link to comment Share on other sites More sharing options...
SallyGrowler Posted January 21, 2011 Report Share Posted January 21, 2011 china is now allowing foreigners to open savings accounts in the bank of china- up to $20,000 worth per year their current policy is to keep the yuan artificially low to further stimulate their already booming economy, whick expanded about 10% last year alone domestic inflation is barely under control, and a lot higher than it is here but last year the yuan went up 3.5% versus the dollar anyway some pundits think it is only a matter of time before it goes up substantially versus other currencies there is almost no trading in the yuan in international currency exchanges right now might be a smart move CNY (Yuan) is a restricted currency. US citizens cannot trade or transact in CNY. I'm sure there are ETFs or Derivatives that purport to have yuan exposure one way or another. Link to comment Share on other sites More sharing options...
dogboy Posted January 21, 2011 Author Report Share Posted January 21, 2011 I don't put a lot of trust in our numbers we get here in the US from our Gov, I have zero trust for the numbers China lets out....... That said, their currency is undervalued because of the demand for Yuan on an open market format. Right now, the way they are letting it dribble around with total control I do not trust it one bit. I do not see them letting the currency go free or substantially higher without the US putting some massive heat(tax everything 25% coming in from China) and we just don't have the leaders to even step in that direction. John if we start taxing their imports they will be forces to start paying it, which means they will need money to do so probably some of the same money they would have used to buy the t-bills we need to sell them to finance our deficit could be a zero sum game, plus it would piss them off, invite them to retaliate, and disrupt our gummint Link to comment Share on other sites More sharing options...
dogboy Posted January 21, 2011 Author Report Share Posted January 21, 2011 CNY (Yuan) is a restricted currency. US citizens cannot trade or transact in CNY. unless there is a US law against, starting this morning, it is okay with the chinese Link to comment Share on other sites More sharing options...
SallyGrowler Posted January 21, 2011 Report Share Posted January 21, 2011 unless there is a US law against, starting this morning, it is okay with the chinese you'd probably have to open an account with Bank of China, but you won't be able to tranfer the position to a wholly owned US bank. IOW - going to your nearest bank or brokerage, it would probably be impossible to instruct the transaction. Link to comment Share on other sites More sharing options...
SurfGazer Posted January 21, 2011 Report Share Posted January 21, 2011 If you can't beat them, join them ... calm down, I'm talking about economy ... I did buy some yuan in the last couple of years, yeah it appreciated about 20% over these years purely because of the yuan's appreciation. "God may I not come back as a bunker in my next life" - bido Link to comment Share on other sites More sharing options...
SallyGrowler Posted January 21, 2011 Report Share Posted January 21, 2011 If you can't beat them, join them ... calm down, I'm talking about economy ... I did buy some yuan in the last couple of years, yeah it appreciated about 20% over these years purely because of the yuan's appreciation. how and where were you able to purchase yuan and hold them in a US account? Link to comment Share on other sites More sharing options...
SurfGazer Posted January 21, 2011 Report Share Posted January 21, 2011 how and where were you able to purchase yuan and hold them in a US account? Probably no way to buy and hold it in a US account. I have my sister and parents in China so they helped me to get the yuan in the banks there, I paid USD. But the account is in their name ... yeah I know in the US we usually don't trust others, even they are from the same family. But that is another topic regarding the culture differences. As I know lots of foreigners invest in China by buying properties there and that has driven up the property price many folds in the last decades. There are lots of future risks involved with this, but many folks have made huge kills in these investments. I have low threshold in term of risk-taking, so I opted for the USD-yuan and betting on the yuan's rise, with all the pressure US has been putting on the China, things is going to get better for my side of investment, though I don't know if either country is going to be the winner of this whole currency war ... "God may I not come back as a bunker in my next life" - bido Link to comment Share on other sites More sharing options...
scooter pie Posted January 21, 2011 Report Share Posted January 21, 2011 aside from physically going to china and taking possession of yuan.... currency exchange is not yet possible for yuan..... then you have export and import restrictions that could nail you depending on how much you're transporting.... but i'm over this whole fiat currency thing anyway... they're all backed by nothing and could be worth nothing in an amazing short period of time given present macro conditions... especially the USD... Link to comment Share on other sites More sharing options...
chomper Posted January 24, 2011 Report Share Posted January 24, 2011 but i'm over this whole fiat currency thing anyway... they're all backed by nothing and could be worth nothing in an amazing short period of time given present macro conditions... especially the USD... Losing faith in the currency ? Link to comment Share on other sites More sharing options...
dogboy Posted January 24, 2011 Author Report Share Posted January 24, 2011 you do have to go to the bank of china- they have at least one branch in chinatown, nyc i guess you give them greenbacks and they credit you in yuan at the prevailing exchange rate http://www.bocusa.***/portal (URL has been edited) there is a branch in NYC and another in LA mainland china has an inflation rate of, i think, about 10% per annum ours is much lower right now even with the policy of keeping the yuan low, shouldn't their domestic inflation fighting policy work to make it stronger against the dollar? i know if it is that easy, we would all be rich is there any reason it would not be a good idea to put at least a few chips on that number? Link to comment Share on other sites More sharing options...
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