“Is Switzerland Really the Next Iceland?”

By Chuck Butler, Editor
www.worldcurrencywatch.com

I must say I love all my inquisitive readers. It truly is a pleasure to write to so many opinionated “armchair economists” like myself.

Perhaps it’s these insane markets or perhaps it’s just my winning personality, but lately I’ve been getting even more questions than usual.

I’m getting questions from all over – some from my Currency Capitalist members (including a few questions I actually answered in your most recent March issue), some questions from you dear FX University readers and even a few random ones from my fellow colleagues.

And since I’m down in South Florida this week, kicking back and taking a much-needed vacation, I want to share my answers for some of the most interesting questions with you.

So please check back all this week as we turn to your questions for the day.

1. I read somewhere that Switzerland could be the next Iceland. What’s your take on that? -J.C.

I doubt Switzerland could be the next Iceland, I think it would first be Ireland. The Swiss have banking problems, but they'll deal with it and get through it.

2. Is the reminbi the same as the yuan? – S.T.

When we first began offering the Chinese yuan, I was confused about the yuan / renminbi. I called a customer of ours that is Chinese. I asked her the difference. What she told me, and what we've told customers since 2002, is that renminbi is the official name of the currency, and the yuan is the slang name. (Sort of like the buck is the slang for dollar)

That’s it for today! I’ll be back tomorrow with more questions from your fellow readers. Till then, have a Marvelous Monday!

Comments

[Patrick McNamara]

I am concerned with your open positions with your World Currency Options Alert given that these positions are backing the US$ to strengthen against these other currencies. Since the US$ has been weakening since last Wednesday we need some guidance. I don't disapprove of you having a holiday this week but surely Bryan Rich is on duty and can give us an update as to any action needed to close out any of these open positions.

[Einar]

Could you define "Iceland" for a humble Icelandic reader? We are still trying to figure it out ourselves.

Best regards
Einar