Anyone excited about upcoming U.S. Dollar Chinese Renminbi trades?

[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.

[chinaforex888]

I am getting very excited! When it does happen the volume will be huge! JPY missed it's chance about 10 years ago when the world approached them to be the central Asian currency the same as the EUR is for Europe. Now that Bush and many other World leaders are asking China to step up, they are. China's RMB has already been accepted in many Asian countries for years. For example shops in Thailand have often accepted payments in RMB over EUR for many years.

Sometimes I wonder why the US is pushing so hard for China to take on this responsibility because they are already a huge global player that is laying somewhat dormant. As soon as this all becomes a reality, China's RMB could become the "New World Currency" replacing USD. Every country in the world trades with China. There will be no more need for a French importer to pay the Chinese manufacturer in USD, he will then be able to pay in RMB. Long-term, how is this going to influence the USD?????

[californiajeff]

I think long term it will cause the dollar to go downhill.

[BullMarket]

Hopefully then we can lower these blasted intrest rates!!

RMB/USD pair?? I'd have to see the spread. Who cares how important it is. As long as it moves well and has a low spread i'm in.


-Frank

[patrick_fx]

Originally Posted by chinaforex888

I am getting very excited! When it does happen the volume will be huge! JPY missed it's chance about 10 years ago when the world approached them to be the central Asian currency the same as the EUR is for Europe. Now that Bush and many other World leaders are asking China to step up, they are. China's RMB has already been accepted in many Asian countries for years. For example shops in Thailand have often accepted payments in RMB over EUR for many years.

Correction. I have lived in Thailand for over a decade. Although I'm not living there in the past few years, I visit Thailand every year. I've never heard/seen any shops in Thailand accept RMB period. A few shops accept US dollar, but never RMB.