Forex Investment and Currency Trading

The Chinese yuan (CNY) has been on an appreciating path since its de-pegging and revaluation on 21 July 2005. The pace of this appreciation appeared to pick up sharply in Q4-07, in line with the public change in official rhetoric to “tight” rather “prudent” economic policy. Since then, a shift by the Chinese authorities has been noticed in [...]

[Read more →]

1 – 3 Month Outlook – CNY
China’s FX reserves soared by a massive $128.4bn in the first four months of the year as the authorities sought temporarily to stabilise the USD/CNY rate. Latterly, however, the Chinese currency has begun to appreciate once again, breaking below the 6.9 level. This positive trend is expected to [...]

[Read more →]

Spot

Non-convertible. Need a document asset transaction to be able to trade spot. Managed float vs undisclosed basket by CB, band width of +/- 0.5%, to last closing.

NDFS

NDFs typically trade up to one year, but longer NDFs possible up to five years, reasonably liquid and tenors stretch out to 10 years but infrequently traded. Standard [...]

[Read more →]