Friday, January 23, 2009

Wither the Yuan?

Now that Geithner is going combative on the Yuan, will the Chinese let it float?  It's really hard to predict what effect that will have on the world. The real purchasing power of most currencies will drop pretty hard for Chinese made goods. Which is just about everything at the moment.

There are a couple of funds that track the Yuan. Currencyshares notably does not have an ETF that tracks the Yuan. The Dreyfus Wisdom Tree fund is out there (CYB). I held it for a little while in 2008 but it didn't really trade very much (note the stepwise like graphs), so I got worried about it and dropped it.  I also thought it should pay some sort of yield like the Currencyshares funds.  Anyway, the latest prospectus showed up again today and I am thinking about jumping in again. 

No comments: