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The Fund should have insisted on a currency board, a legally constituted independent body whose sole role is to maintain a predetermined exchange rate.
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Mr. Fung says because the pool for CNH is still quite shallow, investors might have to gain exposure in RMB through derivatives like RMB non-deliverable forwards, a derivative product that allows investors to exchange predetermined amount of renminbi at a set exchange rate on a fixed date in the future.
You are allowed to purchase a predetermined amount of Renminbi for a specific exchange rate based on a fixed time frame sometime in the future.
Exchange rate.
The exchange rate.
The exchange rate is trickier.
The exchange rate may help.
The exchange rate helps.
One is through the exchange rate.
"Sustaining a fixed exchange rate became impossible".
The exchange rate, however, is poor.
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