Hello David, <<... the speculation in the Yuan is taking place now, as foreign investors invest in enterprises in China>>
... started middle of last year, and so far, a failed speculation.
<<... are the FDI transactions done in the more easily convertible USD or Yuan?>>
... USD into China, conversion into RMB by PBOC.
<<IF USD-based FDI>> ... meaning there is a lot of RMB in the Chinese Economic system, in private hands, and a lot of USD in PBOC hand.
But PBOC USD is mostly in the form of Treasuries and a bit of Agencies already.
If private hands want USD back, and do not wish to hold RMB, then ... well, you know, or can guess, and even better, imagine ...
<<It is more a buy the rumor sell the fact play than I first thought>>
... precisely.
Chugs, Jay |
