My knowledge of currency hedging is based mostly on the following:

1. I am right now wearing a Swiss watch I bought in Korea at the height of the 1997 Asian crash. When I bought it, I was getting about 2000 Korean Won to the Dollar and Korea's economy was in such bad shape, the Jeweler sold it to me for half the regular Won price. I took it to a jeweler in Seattle to get a link taken out of the band and the jeweler told me that what I had paid for the watch with the band was less than they charged for the band alone.

2. Much of my firm's growth over the last six months has come from European companies retaining us to handle their legal needs in China and elswhere in Asia and from Asian companies coming into the United States, mostly to buy up American companies and properties. I am always saying these companies "laugh at" our fees because they are so low in comparison to what they pay their lawyers in countries with a stronger currency.

3. I have seen countless clients both get burned and make fortunes from currency valuation shifts. Changes in currency values can determine whether a business deal is profitable or not.

4. It is always a good idea to be clear on the currency in your contracts. Many years ago a client came to us for assistance in collecting on a contract our client claimed was in US dollars and the other side claimed was in Hong Kong dollars. Big difference.

This is all just a rather long preface to a very short point. CNReviews.com just came out with an excellent and very thorough internet review, entitled, "Links: RMB appreciation and the emergence of a new Asian reserve currency," on where the dollar/Yuan exchange rate is going and what businesses can and should be doing about it. The post warns that it is "another long post on RMB appreciation that will be boring for those not interested in this topic," but I see it as full of helpful links and I urge those who deal with Yuan Dollar exchange issues to check it out.