Sunday, December 4, 2011

What are the benefits of doing Foreign Fixed Deposit over regular exchange, if exchanging USD to RMB, if any?

Is the interest yield too low to warrant 'fixed' deposit? Thank you, I'm new.|||You get more interest for longer term deposits.





We don't know what finance problem you are trying to solve by doing a foreign fixed deposit, but if you are speculating on currencies by doing this, it is very cumbersome. CME RMB futures contracts start in a couple of weeks and that is a much cleaner way of speculating on currency moves. If you have known expenses in RMB, then a foreign fixed deposit is a fine way to go.

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