I don’t know how it works, if someone can explain than I will really appreciate it. But I keep on hearing that US is pushing China to not bound it’s currency to US dollar, which the US claims is undervalued up to 40%. If they agree, which I think they finally will, the Chinese currency will go up in value.
So, would it be a good investment to buy Chinese currency?
Re: Currency market
It will end up in a long document, if every thing is explained here. Since you can find well written documents on the web so here are some links that will answer your questions.
A good questionnaire about Exchange rates both fixed and variant:
http://www.bsp.gov.ph/resources/other_docs/exchange.htm
An introduction to Currencies:
http://www.currencyfaq.com/
Quick glossary:
http://www.forex-options.com/glossary-printer.htm