If China is artificially lowering its currency, how do we make money off it?
Economics - 2 Answers
Random Answers, Critics, Comments, Opinions :
1 :
Buy as much Chinese goods as possible (because they are cheapest in the World) and take very low interest dollar loans from the Chinese to finance the imports of China and force China to undervalue her currency further. This is what the US has been doing. And, that is the correct strategy. The country that undervalues it curreny for long period of time suffers the most,
2 :
Go to an investment services firm and tell them you want to sell the chinese currency short. Open an account and deposit your money in it. Warning: speculation on exchange rates is very dangerous!
