Predictability is the curse of central banking when it gives speculators a sure thing. Every day for the past several years, investors have been visiting their banks in Hong Kong to convert Hong Kong dollars – pegged to the US dollar – into a maximum of RMB20,000 per day on the supposition that the renminbi would continue rising in value against the US dollar forever.
Getting Burned in China’s Currency Markets
Getting Burned in China’s Currency Markets
Getting Burned in China’s Currency Markets
Predictability is the curse of central banking when it gives speculators a sure thing. Every day for the past several years, investors have been visiting their banks in Hong Kong to convert Hong Kong dollars – pegged to the US dollar – into a maximum of RMB20,000 per day on the supposition that the renminbi would continue rising in value against the US dollar forever.
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