In this issue of Monetary Mechanics, I am going to formally outline a trade idea that I have been thinking about for the past few months since the recent reflationary impulse has stopped dead in its tracks. I first formed my thesis before news about Evergrande broke, and although my thesis is not contingent on a major Chinese credit crisis, I still believe that increased risk-off sentiment resulting from the Evergrande drama has perhaps increased the likelihood, as well as accelerated the timeline, of a CNY devaluation.
Any thoughts on the digital yuan? I am trying to get a better understanding of the goals there generally, but I guess specific to your thesis - any opinion on pboc's aggressive rollout of this as an attempt to relieve need for dollars?
Great trade
Any recommendations for books on Eurodollar system?
do you mean USD/CNY calls?
The pair should be considered USD/CNY not the opposite or is correct CNY/USD?
Incredible. Absolutely incredible. Props to you. I am going to re-read this tomorrow then come back with questions. Keep up the good work
Any thoughts on the digital yuan? I am trying to get a better understanding of the goals there generally, but I guess specific to your thesis - any opinion on pboc's aggressive rollout of this as an attempt to relieve need for dollars?