The Economist reports: “China is ditching the dollar, fast”.
Over 30% of China’s trade in goods & services is now done in its own currency, RMB.
China settles over 50% of its total cross-border receipts (including financial flows) in yuan, up from less than 1% in 2010.
This will harsh the yuan relative to the dollar long term, right? Should I buy Yuan?
Yes, why not speculate on the winning side? But anyway, I don’t know the process of buying Chinese financial assets, don’t even know if it’s possible.
China has capital controls. The usual market logic doesn’t necessarily apply. If they decide a strong Yuan is not in their best interest they may deliberately weaken it.
There are plenty of stable investments in China though. The one i would stay away from is real estate probably.