Many believe that the Chinese currency will eventually become number "yuan" to the U.S. dollar, so it’s fortunate for them that there’s an exchange traded fund (ETF) to track it.
WisdomTree Chinese Yuan Fund (CYB), launched on May 22, is a straightforward, highly liquid way to play the yuan against the dollar, reports Steven Halpern for Blogging Stocks.
The major China-U.S. dynamic that has developed over the past few years has also led to a drastically different global economic climate, says Halpern. The dynamic tends to operate like this:
- China sends goods to the United States
- The United States sends dollars to China
- China sends dollars back to United States