Silver as an investment

Chinese Yuan Surges To Strongest In Over 2 Years

As financial conditions get easier and easier in the US (despite The Fed’s best efforts to tighten), and China continues its verbal ‘tightening’ on an over-leveraged financial system, China’s onshore yuan has topped September’s highs (when they last intervened), surging to its strongest since Nov 2015…

Offshore yuan is also under pressure with USDCNH selling (Yuan buying) reportedly led by banks and leverage accounts in Asia.

As we pointed out previously, US equities have been on a non-stop tear higher since the start of the Shanghai Accord in early 2016.

That won’t help exports…

BUT… Critically, the illusion of a strengthening Yuan is merely the impact of manipulating the dollar against the rest of China’s major trading partners’ currency. As the chart above shows – China’s broad Reniminbi basket (combining all the major FX crosses) has been flat for 18 months.