I posted what I thought was an interesting piece of news yesterday. Nobody took much notice of it because it had been such a hectic session. I will give it to you again. Thailand has agreed in principle to buy Chinese bonds in an attempt to diversify its reserves. They now need China’s permission to do so.
Now imagine if everyone does the same – and why wouldn’t they want to hold Chinese bonds. Super cheap currency in what perhaps one day will be the biggest economy in the world. Where does that leave USD/CNY. Does China continue to intervene (buying US Dollars) or are they forced to let the Yuan float free. Food for thought.
