[californiajeff]

Unless you have been in a cave for a while, the Chinese Renminbi is the currency of the world's largest country and within the next few years it will start freely trading on the world's currency markets. Some people may refer to China's currency as the Yuan but I feel that is a misnomer since it is officialy known as the Renminbi in China.

The U.S. Dollar - Chinese Renminbi pair will represent a population of over 1.6 billion people in the world. That's 1.3 billion for China and 300 million for the US according to July 2005 CIA estimates.

I believe this pair will far surpass the importance of today's most important pair which is the EURUSD in my opinion. The EURUSD pair represents a population of about 760 million people. That's 300 million for the US and 460 million for the European Union according to July 2005 CIA estimates.

Based on population statistics, the U.S. Dollar - Chinese Renminbi pair will be twice as important to the global economy than the EUR USD pair will be. Of course, population alone does not determine everything but I know people will be watching this closely to find out what happens to the future of the Dollar.

I think it will be very exciting to trade the U.S. Dollar - Chinese Renminbi pair. I bet it will be very volatile when it first becomes freely tradeable. This way all the speculators can get their pent up desire to trade out of their system. After a year of free trading though, I think it will definitely settle down and be a very good pair to trade. Just my two cents.