Jim Rogers talks up the Chinese yuan amid fears of a US market crisis

Legendary investor lauds the yuan but says his cash holdings are still in US dollars because the Chinese currency lacks full convertibility But the currency he would hold might be the Chinese yuan rather than the US dollar, if the former were fully convertible, the veteran investor said in an interview at an investor event in Hong Kong on Saturday. The remarks came at a time when the 83-year-old billionaire was planning to sell some equities and buy up cash, as he worried about an “extremely bad” crash following a rare long rally across global markets. “The US dollar will get overvalued, and I have to figure out where to go next. In theory, it should be the renminbi,” he said, adding that restrictions on the Chinese currency remained an obstacle. Rogers also believed the Chinese yuan would be fully convertible in the future, as the size and scale of China’s economy left “huge pressures” on the country’s money flow. Before the Chinese yuan is fully convertible, Rogers said he would continue to purchase US dollars, despite repeatedly warning that the United States was now the world’s largest debtor nation, whose national debt had accumulated to nearly US$40 trillion. “[The US dollar] is not (a safe haven), but people think it is.

Read the full article at the source →