This Blog is also available as an 
RSS Feed
Use Every China Currency Blog to Your Financial Planning Peril
3 April 2008 - Features - EditorYou are in teeming company if you like to blog. Using the Internet for crucial stock trade decisions is another matter. We are in the same boat as every other Internet publisher. The code is to make sure that the audience benefits from visits to your web site. That is why we advocate staying away from speculation in currencies.
Criticism of national currency management by governments has been rampant. You can read another side of this story at one of our sister web sites: Chinatrade.com
A recent development with respect to the currency of China has been its simultaneous appreciation against the dollar, and depreciation versus the Euro and the Yen. Growth of world trade has made major currencies instruments of speculation. Corporations that trade with other countries have always hedged against potential currency losses. However, a market has also developed for investors to buy and sell dollars based on forecasts of how much it may be worth in future. Why does this involve excessive risk for financial planning?
China makes no secret of its determination to set the RMB value against currencies of its important customers and suppliers. The United States and its close allies swear by free market forces. However, interest rate reductions by the Fed have huge swing effects on dollar values. The Oil Producing and Exporting Countries (OPEC) also tend to affect world currency values abruptly. Predicting currency futures is a specialized skill, but is an unreliable business for even the most experienced operators.
It seems best to try to buy and sell in dollars. Booking other currency inflows and outflows at fixed dollar equivalents is another conservative step in this unstable world political environment.
RSS Feeds allow you to stay up to date with the latest news and features from StockMarkets.com. To subscribe to it, you will need a News Reader or other similar device. Use the following URL as your direct feed in your RSS Viewer: http://www.stockmarkets.com/blog/rss/
- Video: Doug Dachille Discusses Fed and Complacency: Video
- Saturday 13 March 2010, 12:14 am - Video: Orlando Sees Fed Raising Rates in Second Half of 2010: Video
- Friday 12 March 2010, 11:15 pm - Video: Winters Discusses Outlook for Wintergreen Funds, Stocks: Video
- Friday 12 March 2010, 11:15 pm - Video: Ryding Says Yellen in `Dovish Spectrum' of Fed Officials: Video
- Friday 12 March 2010, 10:52 pm - Video: Most U.S. Stocks Drop on Decrease in Consumer Confidence: Video
- Friday 12 March 2010, 10:45 pm - Video: Bennenbroek Says Yuan Peg to Dollar Could Break Mid-Year: Video
- Friday 12 March 2010, 10:19 pm
- Legislation Proposed to Regulate Financial Advisors
- Monday 8 March 2010 - Features - Sarbanes-Oxley Act – Protecting Investor Interests
- Thursday 4 March 2010 - Markets - Fairtrade – Promoting Sustainable Development
- Monday 1 March 2010 - News - Three Pillars of the Basel II Accord
- Thursday 25 February 2010 - News - Final Week of February May Prove Challenging on Wall Street
- Monday 22 February 2010 - News - BCBS and the Basel II Accord
- Thursday 18 February 2010 - News
everton rhoden: who is incharge of stock in friench guyane...
www.stockmarkets.com/blog/january-ends-on-low-note-dragged-down-by-techs
User Comments & Reviews
Leave a comment: