RMB-denominated OTC derivatives poised to take off in Hong Kong
The renminbi deliverable forwards market has hit at least $28 million during the first month of trading following an agreement in July between the the PBOC and HKMA that enabled Hong Kong to act as an offshore centre for the Chinese currency.
The first steps towards developing a renminbi-denominated, over-the-counter derivatives market in Hong Kong have taken place during the past month with the start of a renminbi deliverable forwards market. To date, more than $28 million of notional value of deliverable forwards has been agreed between derivatives counterparties.
The trading of deliverable forwards coincides with the establishment of deliverable deposits and spot offshore renminbi transactions in Hong Kong. This follows China's
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