Well, what do you think of this article? Do you think there is any truth to it? I'd love to hear some opinions. http://www.examiner.com/article/chi...old-on-reserve-currency-as-early-as-september
To me the article reads as little over-speculative. Yes China is looking at setting up the yuan as a reserve currency, but they are fundamentally risk adverse, and very committed to avoiding big swings in the value of their currency. Long-term I would expect the value of the yuan to continue rising. My yuan holdings have appreciated considerably, but over several years. I guess it depends a lot of your approach to FOREX trading.
I couldn't have said it better myself. I personally would be a little more hesitant to buy into Yuans, but that is just me.
Take it with a grain of salt and you could avoid long-term consequences there. It isn't a good idea IMO. Wait under the waters calm down, and only then consider it. I wouldn't want to see you here complaining.
I mean you have to be carefull with yuans, because USA is not just going to give up their status as the worlds only reserve currency and we will definitely see diplomatic tensions between the two sides if China tries to make the yuan a reserve currency
I'd be cautious to say the least on buying on the strength of just that one article to be honest. While it's certainly something worth keeping an eye on in the near future, at the moment I think it's better to just sit and wait. Sometimes the best course of action is no action at all and I think this applies for the moment.
This may be a segue but allow me to relate my experience. When we went on a tour to Thailand in 2013, I made a mistake of buying Baht for our pocket money. It did not sit well with my husband who always preferred to have US dollars when we travel. As I said, it was my mistake out of excitement maybe. Since I had exchanged quite a big amount, I was left with a fortune of Baht after the trip. Until now, those Baht bills are in my cabinet, waiting for another trip. I cannot exchange it back because the exchange rate over here is very, very low as to lose half of the value.
