Moving some dollars into yuan
Maobacks vs. Greenbacks
I have been investigating the obvious trend of RMB appreciation (or some would accurately point out, relative RMB appreciation to the declining dollar) and what to do about it. I wrote about using CNY ETNs to hedge RMB appreciation and later shared more links on this subject.
I’m currently in process on setting up an Everbank account that is based on non-deliverable forward contracts. Its a complicated and obscure thing to do for a retail investor so even though large, sophisticated players may have ways to hedge RMB-USD exchange rate, the little guy like me has only a few options. More on this at my China group blog, CN Reviews.
Tags: cn reviews, RMB appreciation
April 10th, 2008 at 5:15 pm
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May 8th, 2008 at 11:53 pm
A bit late but just catching up with your “content” trail via Twitter and CN reviews..
As an American who lives abroad about half the year, I looked at this as well. RMB ETN is interesting but a better bet may be the Pan Asian Bond Fund listed in HK. Most non pegged asian currencies are watching the RMB per competitiveness (Singapore, Thai, Korea, Malaysia etc) and so they tend to all move together. This is a fund with gov debt from a basket of countries.. So you make the interest on the debt + currency appreciation and multi country and bond positions give you some hedging.
Problem is US citizens cant buy it for various regulation reasons, but if you have friends or relatives abroad or are just a green card holder should be fine. Also, general stock and exchange ETFs like Chinas H Share FXI give you currency appreciation built in too. Of course this is like an equity investment which can (and does with high volatility
go up and down.
.. enjoy the CN reviews gang.. finally totally agree with you that Twitter is like adult chat rooms or IM for American adults who have no clue what ICQ/QQ/MSN/YM are!!