The Dollar's Dominance is Diminishing

The day after Christmas, the Chinese yuan, also known as renminbi, rose to an all time high against the U.S. dollar. Today, China and Japan have tentatively agreed to start trading of their currencies directly, leaving the Dollar out of the equation. This is yet another step in the process by which federal reserve notes will be replaced as the world's reserve currency. It's not a question of "if" but rather a question of "when".  For anyone who is paying attention, it's easy to read the writing on the wall.  


If most of your savings is in dollars or dollar denominated assets, are you prepared for a future in which the U.S. dollar's purchasing power is greatly diminished?


To read more about this new agreement between Japan and China - CLICK HERE!

Will the Yuan Gain 10 Percent Against the Dollar This Year?

Few doubt that the yuan, or renminbi (RNB) will continue to appreciate, relative to the US dollar. The question is, "How much, how soon?"

The level of the yuan is determined by the People’s Bank of China..for now.

And although I would never want too much of my savings to be in fiat currency, I'm going to continue diversifying what currency I do save by trading Federal Reserve notes for RNB!

To read an interesting article with more details about what the future may hold for the yuan - CLICK HERE!

Jim Rogers On the Death of the Dollar and the Ascendancy of the Yuan

Having a fully convertible currency means that it is able to be traded on the foreign exchange market with few restrictions. Trade involving the Chinese yuan, or renminbi however, still has many restrictions placed on it by the Chinese government and neighboring countries as well. 

Many big steps have been taken in the last year, and more recently though, to move the yuan in the direction of a freely traded, fully convertible currency. For example, Bank of China Ltd. just had its request to bring yuan it collected in Hong Kong back to mainland China. And according to the head of the IMF's Asia and Pacific department, people in Beijing are beginning to understand that both exchange rate flexibility and allowing the yuan to appreciate more quickly against the US dollar, will be necessary to control inflation in China and essential for their economy's continued growth as a major player in the global marketplace.

James J Puplava just interviewed legendary investor, Jim Rogers on the Financial Sense® Newshour about this subject and other economic news closely related to it.

To listen - CLICK HERE!

The Why and How of Investing in Chinese Yuan

Jay Carter

Jay Carter, host of Financial Survival Radio talks about his recent interview with legendary investor, Jim Rogers, and his advice that people store a portion of their wealth in the form of Chinese yuan or renminbi (RNB). He also interviews Chuck Butler of EverBank World Markets who explains how to open an FDIC insured account denominated in Chinese yuan.

WARNING: If you are offended by a four letter word that begins with the letter "s", be advised that Jay Carter does use it one time at the very beginning of the show.

Chuck Butler

One option that neither the host nor Chuck Butler mentioned however, is to purchase and hold a certain amount of yuan (RNB) in cash. This may be an option for some who don't want to fork over the $10,000 minimum needed for an Everbank World Currency account and can be done through several banks and online services. Travelex seems to have the best prices and they promise to beat any competitor's rates. Having the yuan shipped to your door can be as low as $9.99. Even better, if there is a store location in your area, you can pick up your order at no charge. They may charge you a fee if you purchase less than $500 worth of yuan, so pay attention to the total price during the online check out phase, or be sure to ask if you place your order by phone!

Paving the Way For a Free Floating Yuan

"The yuan has risen 0.2% this week and has accumulated a 5.4% gain against the U.S. unit since June ..."
To read more - CLICK HERE!













The latest news also indicates that China's central bank will likely loosen control over its currency and may even double the rate at which it will allow the yuan to appreciate. 


Also it seems that the world's third largest miner, Rio Tinto of Brazil, is exploring the idea of settling its future accounts in yuan rather than dollars. 


The days of the US dollar as the world's reserve currency could be coming to a end sooner than most would have thought. Maybe having all your savings in US dollars or dollar denominated assets isn't the best idea?

Possible Pull Back For the Yuan, But Long Term Outlook Hasn't Changed

Presently 1 US Dollar is worth only about 6.48 Yuan
compared to about 8.28 in 2001. 

Since the Chinese yuan, commonly referred to as the renminbi (CNY), was depegged from the dollar around this time last year, it has gone up 5.38 percent in relative value. Presently, 1 US dollar is worth only about 6.48 yuan compared to about 8.28 in 2001. 


In fact, China’s real exchange rate with America has strengthened by almost 50% since 2005, according to calculations by The Economist.


To read more - CLICK HERE!

Yuan at Record High Versus Dollar after Treasury Report - BBC News

Continue reading the main storyThe yuan's pricing has been a contentious issue between China and the developed economies

The People's Bank of China (PBOC) fixed the yuan's mid-point at 6.4856 against the US dollar on Monday. China's yuan has hit a record high against the US dollar after the US Treasury department said the Chinese currency was undervalued but not manipulated.

China has been accused by the US and other developed economies of keeping the value of its currency artificially low to boost its exports.

(Read Full Story)

How to Buy the Chinese Renminbi

How to Buy the Chinese Renminbi - by Brett Owens   


Editor's Note: I like to buy and hold physical Chinese Central Bank Notes (Yuan). However, you can also open a bank account denominated in Chinese renminbi. Brett Owens shows you how - Click here to learn more.


Alright, so you’re all spun up on investing in the Chinese renminbi (yuan).  Short of flying to Shanghai, many folks have asked – how the heck do I buy the renminbi?

Good news – EverBank now allows you to open an account denominated in Chinese renminbi.  Click here to learn more.


In case you’re not familiar with EverBank, here’s a little background.  It’s a virtual bank that was co-founded by Casey Research co-founder (and frequent guest columnist here) David Galland.  They offer, to my knowledge, the most extensive offering of foreign currency bank accounts and CD’s.  Well worth checking out, as they provide a valuable way to potentially diversify your savings, and hedge against currency risk.

(Read More)