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Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. As the Chinese economy becomes a more dominant player in international trade and the yuan continues to gain more acceptance, more and more investors are looking for ways to obtain exposure to the Chinese currency.
While the yuan is still somewhat pegged to the U. Investors have several yuan investment options, including purchasing yuan directly and holding it in cash, investing in funds that hold the Chinese yuan, and buying yuan futures contracts. However, there are nuances to each investment. From to , the devaluation of the yuan by the Chinese government has accelerated from approximately 6.
As the Chinese economy continues to expand, rapidly moving China from its status as the premier emerging market economy toward being the world's number one economy overall, the yuan is gaining substantially greater acceptance worldwide. Further bolstering the status of China, the International Monetary Fund IMF added the Chinese renminbi to its list of reserve currencies to be used, in part, for central bank transactions.
The yuan is used to facilitate global and financial transactions and is typically used offshore—outside China—while the renminbi is more frequently used in China—onshore. Other currencies that are considered reserve currencies include the U. The elevation of the renminbi's status allows it to be used more frequently in global trade and international financial transactions.
However, the Chinese government still controls the value of the yuan and renminbi exchange rates and has capital controls in place, which prevent Chinese investors from moving money out of China. Until China can freely float its currency and allow the free movement of capital investment in and out the country, it's unlikely that the yuan or renminbi will replace the U. Reserve currencies are used to price commodities, such as gold and crude oil, as well as facilitate global trade transactions in developing countries that have less stable currency regimes and financial systems.
Nevertheless, it's fair to say that the Chinese currency is on the path to becoming a larger player in international transactions.
Investors must convert funds back to U. As long as they hold money in these accounts, investors benefit from any appreciation in value in the Chinese currency. They are IRA-eligible, and a monthly maintenance fee may apply. As long as the yuan remains a non-deliverable currency, withdrawals can only be made in U.
Another way to invest in the yuan is through exchange traded funds ETFs designed to perform in accordance with the value of the Chinese currency. The USD accounts for the largest share China Car Sales Fall 9. China Producer Inflation Highest Since China Forex Reserves Beat Forecasts. Brazilian Equities Snap 3-Day Winning Calendar Forecast Indicators News. Housing Index New Home Sales. More Indicators. National Statistics World Bank. We have a plan for your needs.
Standard users can export data in a easy to use web interface or using an excel add-in. API users can feed a custom application. White label accounts can distribute our data. We Are Hiring. The currency hit a three-year high in offshore markets on Thursday while the U.
China's yuan has outperformed against the dollar since mid The widely anticipated dollar weakness gives investors an opportunity to put money to work abroad, said Tocqueville Asset Management portfolio manager John Petrides. He suggested playing the dollar-yuan divide via the VanEck Vectors J. With the yuan now above a multiyear downtrend versus the dollar, China can use its currency's strength to its advantage, said Bill Baruch, the founder and president of Blue Line Capital.
Baruch was especially partial to copper — he owns calls on the underlying commodity — and suggested playing it through mining company Freeport-McMoRan. I think that could break out to the upside.
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