FXCH maintains a deposit account denominated in Chinese renminbi, and interest earned will be used to pay expenses and any left over will be distributed to shareholders. [Violent Turn for Yuan ETFs]
Stronger export numbers, or decreases in imports, help strengthen a domestic currency. Higher exports means increased demand for yuan-denominated goods, whereas lower imports translates to lower Chinese demand for foreign-currency-denominated goods.
Chinese monetary policy move may also signal a start to the country’s move toward reforms – many have criticized China’s currency policy, arguing that the central bank has artificially strengthened the yuan.
Market Vectors Chinese Renminbi ETN
