Monday, June 21, 2010

China Announces Yuan To Float: Not Much Change, But ETFs To Use

A few months back we wrote about the possibility of the Yuan exchange rate changing. The two direct Yuan ETFs are CYB and CNY (click links to receive alerts). As we reported yesterday, Roubini says that the move may backfire for the western world. China itself says any appreciation in its currency alone can not rebalance world growth and it is urging other major countries to implement more fundamental reforms.

Since the announcement, the Yuan has appreciated... 0.3 to 0.4%. Since December 2009, CYB is down 1.03%, and CNY is down 1.39%.

It remains to be seen whether this announcement means any real change. However, it does sound just like another public announcement that means nothing as the currency is still controlled by China and China would not take steps to damage its economy on purpose. Politicians must be happy, and the markets will rally for a short while.

We track all currency ETFs live as one of our Live Tracking sites.

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