jonathan

Riddle: What Currency Is Warren Buffett Buying?

Don't confuse "expecting an event to occur" with "making an event occur". The US government has no plan for what happens to the Yuan and is not a monolithic entity anyway. Factions that represent labor interests in the US would like to the the Yuan rise since (their theory) that would slow imports and mean more US jobs. I would prefer to see the Yuan float just since that is the norm for the international system...wherever the Yuan ends up. The US is not China, it has no central authority like the Communist Party, and has no 'plan' to manipulate China's currency. Frankly, most of our bureaucrats can barely put on their pants without help.

That said; there are a lot of very smart and wealthy investors who may see an opportunity in the artificial price that the Yuan currently has and who will seek to place bets accordingly. Many would bet on the Yuan rising if it were floated...thus the expectation. That is not the same as somehow making that change actually happen.