Rogers observed that the Chinese currency has consistently been the second strongest currency in the world.
“The Chinese currency is down about three percent against the US dollar but three percent fluctuations are nothing,” the investor claimed.
Stocks in China have experienced large-scale sell-off and volatility since early July. On August 11, the People’s Bank of China (PBC) devalued the yuan, allowing it to fall 1.9 percent against the US dollar to boost the country’s economy, precipitating the biggest one-day exchange rate adjustment for the currency in a decade.
The following day, dollar-yuan exchange rate showed a further 1.6-percent decrease. On August 13, the PBC devalued its national currency by an additional 1.1 percent against the US dollar, letting the yuan drop for the third day in a row.
“The market certainly had a big drop in China, but the markets everywhere have had a big drop. China certainly had a substantial drop this year from its high, but it still has done better than the United States and most other markets,” Rogers said. “Everybody’s having problems and China has done better than most.”
Jim Rogers is a high-profile investor and international financial commentator. In the 1970s he founded the Quantum Fund with billionaire George Soros. Currently based in Singapore, he is the chairman of Rogers Holdings and Beeland Interests, Inc.
A proprietary oil benchmark by Beijing is good for both China and the world, Rogers believes.
“It would certainly be good. That would be another sign that China’s opening up its currency and opening up its economy and its markets to the outside world, which the world certainly needs and it’s good for the world.”
Earlier in September, media reports suggested China would launch in October a global crude oil futures contract, priced in yuan.
“The Chinese are the largest producers and largest consumers of many commodities, so, certainly, there should be a market in China for most things. So, I find it a further step in opening up China to the outside world, which is good for the world and good for China,” Rogers said.
The new Chinese crude futures contract would be the first to allow participation by international investors.