Looks Like Its Yuan Time

[dinarsclub]

http://english.peopledaily.com.cn/200403/15/eng20040315_137534.shtml


Regulator moves to curb yuan speculation

China has halved the amount of dollars non-residents can change into yuan as it wages a battle to prevent people from speculating on a possible revaluation of the pegged currency.
.............................

[fsm75]

Can someone explain this to me? This is from the article regarding Yuan. What does "rein money growth" mean? It does not make sense that increased speculation and purchase of a currency can cause inflation in the country of the currency's origin. Please explain.

"Rampant speculation -- to the tune of US$40-US$50 billion in hot money inflows last year according to Standard & Poor's -- is applying upward pressure on the yuan, making it tough for China to rein in rapid money growth amid growing fears of inflation. "

http://english.peopledaily.com.cn/200403/15/eng20040315_137534.shtml

[MJI Capital]

The Yuan is pegged artificially low to the USD. Hence, people have been trading dollars for Yuan for the prospect that the Yuan will have to float and increase against the dollar. Then, you simply exchange your Yuan that you so smartly bought prior to the revaluation and make more USD. Its like printing money.

[Psycho for Dinar]

I'd be real leary about investing into the Yuan

http://www.chinapost.com.tw/detail.asp?ID=50878&GRP=A

[Psycho for Dinar]

There are really to many links to pick from regarding downfalls for this investment....Go to Google News and type in "China Taiwan" . It seems tensions are REALLY growing!

[Marilyn]

This is a clear example of what we learned last week, about how currency speculation can actually shift the economy. Because everyone's rushing to buy it, the price is driven up, artificially, and you end up with inflation. The problem it that the increase is only due to the speculators, not because it has any real additional value.

So there are two considerations here;
The first; if prices are artificially high now, it's overvalued and not worth what you're paying for it.
The second; if the re-valuation strengthens it, you can make a profit.

Since most of us are new to the currency exchange, we don't have any base knowledge on the subject. I read about looking for changes, that signal when a currency is about to soar. This does sound like one of those signals. There are models to assist traders, lke the "Double Dip", etc. I think XE and OANDA have some literature for the adventurous.

[Jared]

Speculating on one currency is enough for me! But as they say, an opportunity missed.....

Jared :wave:

[robert_dinaro]

the profit to be made from china looks staggering it's some market place, it looks likely that it will float, :happy64:

i think a float is still 3-4 years away :crying:

but this is one boat to china you do not want to miss. :lmao:


Also Sudan, discovery of oil....currency undervalued? ....sorry jarred :shhh:

http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=3201

Experts from the formal banking sector, however, are not surprised by the phenomenon. "It was understandable when people bet on the Iraqi dinar - people normally expect to make profits after wars," said a senior banker at Al-Delta International Bank. "It is a well-known scenario that after a war, the economy starts to improve and the value of the currency increases."

Indeed, people who traded on the Kuwaiti dinar in the early 1990s made huge profits as it shot up from LE0.5 after the Iraqi invasion to LE22 when the war came to an end. "People still believe that this will occur with the Iraqi dinar when the US leaves or the fruits of the reconstruction projects start to appear," the banker explained.

The same theory applies to the Sudanese pound, said another financial expert at the Central Bank of Egypt, who asked to remain anonymous. "People think that the Sudanese people live on a petroleum volcano, and that when it explodes the country will witness a complete transformation," he said.

[chiacgomonroe]

The recent Wall Street Journal article makes me interested in this as well. eBay doesn't seem to habve many sellers.

I would be up for buying some Yuan and holding if I can find a source.

The article seemed to indicate that the same $10,000 limit we are seeing for ID is true for Yuan as well.

This looks like it's moving much faster than ID though, so we'll have to find a source quickly, or not try to beat the curve.

JMHO,
chiacgomonroe

[dinarmite]

The recent Wall Street Journal article makes me interested in this as well. eBay doesn't seem to habve many sellers.

I would be up for buying some Yuan and holding if I can find a source.

The article seemed to indicate that the same $10,000 limit we are seeing for ID is true for Yuan as well.

This looks like it's moving much faster than ID though, so we'll have to find a source quickly, or not try to beat the curve.

JMHO,
chiacgomonroe


i have $5000 in china yuan at 7500 yuan per $1000 at my bank of america.
your bank especially if it a large international one would have the best rates.
online there is ordercurrency.com and travelex.com and americanexpress.com.

also have thousands of malaysian ringgits and thai bahts and am getting singapore dollars and vietnam dong.malaysia's currency is also pegged and the other asian currencies are undervalued and all will rise when the yuan is unpegged.they will rise anyway before china and malaysia unpeg theirs so they will be the first to appreciate.

also get $1000 or less at a time as over $1000 requires federal forms and id's.

[chiacgomonroe]

i have $5000 in china yuan at 7500 yuan per $1000 at my bank of america.
your bank especially if it a large international one would have the best rates.
online there is ordercurrency.com and travelex.com and americanexpress.com.

also have thousands of malaysian ringgits and thai bahts and am getting singapore dollars and vietnam dong.malaysia's currency is also pegged and the other asian currencies are undervalued and all will rise when the yuan is unpegged.they will rise anyway before china and malaysia unpeg theirs so they will be the first to appreciate.

also get $1000 or less at a time as over $1000 requires federal forms and id's.

Are you buying and holding these currencies as physical money, or holding them in foreign currency accounts in bacnks?

[dinarmite]

strictly stacks of pretty paper cash in my fireproof lockboxes under my bed.
one can use everbank.com to have foreign currency accounts or cd's,but i don't trust banks or electronic money.
if the dollar does collapse,american banks will be closed for business like they did in argentina.
also i have many glittering 24k pure gold pandas,kangaroos,maple leafs,etc.,keeping my colorful paper company.

[robert_dinaro]

China's First Emperor
The Life of Ying Zheng

http://www.royalty.nu/Asia/China/ShiHuangdi.html

....

He was a fierce military leader and a clever diplomat, and before he was 40 he had unified the previously warring Chinese states. He gave his empire a single currency, a standardized system of weights and measurements, and a common written language. He was also responsible for the construction of the Great Wall of China, which remains one of the largest man-made objects in existence.

A ruthlessly brutal dictator, Zheng sought to control the minds of his people by killing scholars and burning most of the books in China. No longer content to be called "king," he gave himself the title Shi Huangdi, "First August God," or First Emperor. His son would be the Second Emperor, and so on for 10,000 generations... at least, that was his plan.

....

a great man. thank you..

Another great investment China.....

between 1997 and april 2003 china's foreign reserve rose from $139.9 billion to $331.1 billion. That's a rise of 130% over the last 6 years.And a increase of $44.7billion from 2002 figure of $286.4 billion in just 1 year. and as at sep 2004 $514 538 000 000 !!!!!! :eek: ($514 billion) and gold 1 928 000 t/o ( 1.98 million troy ounces)($453.20 per troy ounce) roughly 9 billion USD. WOW...

http://www.pbc.gov.cn/english/diaochatongji/tongjishuju/gofile.asp?file=2004S6.htm

China has artifically undervalued its currency so it could sell more goods to its primary market, US. Yaun is 60% undervalued of its actual price! if the PRC government lets the Yaun free float then it would be stronger than US $ and therfore will make Chinese exports to US more expesive and as a result China less attractive as an investment destination.

http://www.pbc.gov.cn/english/

[paulfleming4]

fruit from a posionous tree

one
dh

I definitly have to agree with you Onepence. That is a nation which basically still smiles on slave labor. I still don't know why my country still deals with that nation, other than to perhaps keep Wal-Mart in business, and I still won't shop in one of those.