Think-About-It

Good Time to Buy Chinese Currency: Follow the 'Hot Money'

Answer: Buy CYB or CNY. I own CYB which pays a money market rate plus or minus any change in exchange rates between $USD & Yuan.

I have a dumb question. Everyone says that if there is a trade imbalance then one government adds to its current account while the other draws down their current account (lowering reserves or adding to their debt ala USA). But isn't that only true if the trade happens directly between governments? If if happens between private enterprises how does that translate to the government's respective reserves or current accounts?