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/biz/ - Business & Finance

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15115480 No.15115480 [Reply] [Original]

Yuan just broke through 7 for the first time. There is a 10 trillion dollar carry trade tied to this currency peg. The global markets are about to have rolling liquidations. Do not sell BTC as it is likely to go parabolic during this event. Be strong anons. This is a level 10 happening.

>> No.15115515
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15115515

me no understand, they are inflating the yuan relative to the dollar? I thought they have always been doing that.

>> No.15115575
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15115575

>>15115515
me thinks tariffs forced their hand to do it at an unsustainable level

>> No.15115595
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15115595

>>15115575
>>15115575
orange coin number go up then, thank you orange man

>> No.15115790
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15115790

>>15115480
UGDABUDGA
WHEr Buy YOANCOIN
bUY lOW
SeLL M0r lowur

>> No.15116219

Jokes on you I have no btc only alts

>> No.15116228

>>15115480
Please explain in layman

>> No.15116275

>>15116228
People borrow in dollars and then convert dollars to yuan to take advantage of differing interest rates. This is called a carry trade. This is happening at the largest scale in history because the Chinese run a fixed exchange rate so in theory there was almost no risk to using leverage to capture the difference. You can borrow in the US at 3-4% and invest in Chinese fixed income at 6-7% to capture 4% times the amount of leverage you are using. This entire trade will now unwind and the results are impossible to predict. This also indicate huge stress in the Chinese economy because 7 has been the red line not to cross since I can remember