With all the talk about China and a Gold backed Currency ( Oil for Gold) ….I decided to take a look at a currency pair NO ONE seems to be watching.

The Yuan has been considered insignificant forever. No one cares about it, No One analyses it , it as if it doesn’t exist, Its treated like the Mexican Peso or the Polish Zloty or the Jamaican Dollar ( backed by Pot 🙂

But hey…If China is about to become the Financial centre of the world I guess their currency has to take a giant leap up and become important on a level with the Dollar Euro Yen etc.

So Look at this…something IS up with the Yuan.

From what I understand it is loosely “pegged” to the US Dollar. Looks like loosely has become the operative word.

Looks like it has gained 8% vs the Dollar since the beginning of the year…precisely the beginning of this year actually….the bulk of that gain in the last 3 months.

I am surprised we have seen no mention of this anywhere.