Comparison Between the Euro, the Dollar, and the Chinese Yuan
June 22nd, 2010 Written by Z
It is often said that a picture speaks a thousand words. In this post, I’ll let the picture do the talking, but I’ll add just one thing.
The Chinese have claimed that the Yuan is freely floating to a basket of currencies made up mostly of US dollars and the Euro. I’m not so sure, actually, I don’t believe it one bit. If the USD and EUR were near equal weight, the chart below wouldn’t show these kind of divergences. Nope. The Chinese have all their USD eggs in one “basket.”
(No, the end price doesn’t really matter. It’s all about how you get there.)
