When I was leaving Beijing last June, I got my security deposit back. I spent some of it getting to the airport and buying stuff there, but there was a good chunk of it still left. I decided to leave it in renminbi (Chinese currency) instead of changing it to dollars, since there was every indication that the dollar was getting weaker with respect to the RMB. If I had changed my 2200 RMB last June, I would have received roughly $282 US. If I changed it at today's rate of 6.98950 RMB per dollar, I would get $315 US. My gain of $33 may not sound like much, but consider that that's on an initial investment of only $282 dollars, meaning that my money grew nearly 12%--in slightly less than a year. Show me a CD that could do so well! I should have kept more RMB. Now the key is to get out at the right time...
Sunday, May 04, 2008
My Investment
When I was leaving Beijing last June, I got my security deposit back. I spent some of it getting to the airport and buying stuff there, but there was a good chunk of it still left. I decided to leave it in renminbi (Chinese currency) instead of changing it to dollars, since there was every indication that the dollar was getting weaker with respect to the RMB. If I had changed my 2200 RMB last June, I would have received roughly $282 US. If I changed it at today's rate of 6.98950 RMB per dollar, I would get $315 US. My gain of $33 may not sound like much, but consider that that's on an initial investment of only $282 dollars, meaning that my money grew nearly 12%--in slightly less than a year. Show me a CD that could do so well! I should have kept more RMB. Now the key is to get out at the right time...
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2 comments:
Nice work. I remember one of the hardest concepts to initially wrap my head around was to stop thinking about gains and losses in terms of changes in monetary value, but rather as percentages. 12% is nothing to sneeze at.
Thanks! And you're the pro. :) The real question is--buy more?
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