Yuan currency pairs
Chinese forex is a pretty new concept and most people are not very familiar with the Chinese Yuan, a currency that is not frequent among the pairs. While traded rarely and lacking the liquidity of the dollar or other currencies that are included in the Majors, the Chinese Yuan is not to be trifled with. Since this country is among the few who has constant and significant economical growth for many consecutive years, it is expected that their currency will also continue to appreciate.
This being said, Chinese forex could be the next big thing in a not so distant future and we could even see the Chinese Yuan among the most frequently traded currencies. The question everyone who is interested in Chinese forex is asking, is how long the appreciation of the currency will continue. Most countries are criticizing China's policy that prevents the Chinese Yuan to appreciate, but for the moment the government and the central bank remains faithful to their belief of keeping it undervalued.
Chinese forex will continue to become more and more attractive as the Chinese Yuan will continue to appreciate, because this is the most effective method of countering inflation. While being reluctant to change and very resilient to outside interference, China is soaking foreign currency. A scenario that has been contemplated lately is the one where the Chinese Yuan will eventually become an international reserve currency. The most rational traders in Chinese forex anticipate that the Chinese Yuan will appreciate somewhere between 3% and 5%.