Australian Dollar Forecast
Invest in the Chinese Yuan Before It Takes Over the World
The Chinese Yuan (name of their dollar) will be replacing the United States dollar in the near future (within 5 years?) economic forecasters state. The dollar has been steadily losing value every year for the last 40 years. They anticipate the dollar to lose its 60-year reign as the dominant reserve currency in the world; it's only a matter of time they say.
Financial transactions in Yuan grew 171% in value from January, 2012-January, 2013. This moved the Yuan to 13th place in front of the Russian ruble for the amount of global currency payments, as it moved up from 20th spot last year. The Yuan is expected to crack the top 10 before long. In March, 2013, compared to a gain of only 5.1% across all currencies, the Yuan foreign payments grew in value by 32.7%, which was a huge gain.
According to HSBC (Hongkong and Shanghai Banking Corporation, super large London bank) the main reason causing the growth in the Yuan is at least half of total trade with the emerging markets is forecast to be settled via Yuan by the years 2013- 2015. This showed evidence of a rise of 3.5% in 2010 and more anticipated each successive year.
Keith Fitz-Gerald, a Chief Investment officer, has repeatedly warned the public and investors in regards to the Yuan's appearance as a reserve currency and suggested ways to get ready for its takeover as the preeminent currency for worldly transactions between nations.
"It's the Yuan's world – the West is just living in it, or borrowing from it, as the case may be," Fitz-Gerald declared early this year. "Demand for the Yuan is growing at such a staggering rate that your financial future will be built upon it."
The Chinese Yuan Outshines the U.S. Dollar.
The United States dollar has lost more than 80% of its value since the U.S. Went off the gold standard in 1971. In stark contrast, the Yuan has increased in value over 25% against the dollar since 2005.
"China, with its 1.3 billion consumers and growing global influence, will be the clear winner of the brewing currency war," Fitz-Gerald stated. "Right now, the Yuan is a partially blocked currency, but that's changing very rapidly as the economic balance of power shifts east. And it will continue to shift for at least the next decade."
Forecast for 2015, the Yuan is expected to really shake up currency markets as it will be a currency that is fully convertible and be traded freely via London.
"When the Yuan truly steps onto the world's stage in 2015, the game will change forever because there will be a fourth currency that has enough liquidity to absorb global capital flows," Fitz-Gerald declared. "The sacred triumvirate of the U.S. Dollar, the yen and the euro will shatter."
Several financial markets are already making the transition in anticipation to be sided with the winner in advance, in the hope of gaining an early advantage.
This year (2013) a deal was announced where trade between Australia and China is now set up to be completed between the Australian dollar and the Yuan directly, without units having to be exchanged into U.S. Dollars first, as has been the custom for 40 years. Only the Japanese yen and the United States dollar were directly exchangeable with the Chinese Yuan prior to this new trade agreement.
Bilateral agreements are also in place for direct trading with the Yuan by Russia, France, the U.K, India, and Brazil. Germany is reportedly getting ready to join the crowd.
How should families and investors prepare prior to the Yuan's takeover of the financial world?
How to Invest in the Yuan $Dollar.
There are several ways families and investors can profit as the Yuan emerges as this century's leading world reserve currency.
The most obvious way is buying the Yuan itself.
This can be done directly online by opening an EverBank Chinese Renminbi World Currency Access Deposit (Everbank is an Online bank). It's eligible to hold funds in an IRA account (tax favorable) and insured by the FDIC, like most normal banks, and there are no monthly account fees. An account can be opened for as little as $10,000. (I heard $5,000 accounts were possible too?)
A second way one can invest in the Yuan is via an ETF fund such as the Wisdom Tree Dreyfus Chinese Yuan ETF (NYSE symbol: CYB). You may find more via a search in Google.
"Many people are tempted to think the Yuan is all about the money itself," Fitz-Gerald noted. "But in reality, it's a byproduct of yet more trade growth outside traditional western trading channels and payments methods." Fitzgerald believes the Yuan is just beginning a meteoric rise against the doomed downward trend of the dollar as the next five years plays out.
American families and investors need to position themselves for this gigantic financial change [before] it happens and they wake up to find their United States dollars lost 50% of their value overnight… By switching their dollars into an account holding Yuan dollars instead, or other investments denominated in the Yuan. We hope this super important announcement will help save millions of families from the loss of purchasing power as their dollars continue to decline.
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