HKMA offers banks RMB repo facility

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Starting today the Hong Kong Monetary Authority (HKMA) will provide a repo facility for renminbi (RMB) liquidity – in exchange for collateral such as government bonds – to banks conducting RMB business in Hong Kong that are experiencing a liquidity squeeze. The RMB repo facility will make use of the currency swap arrangement between the People's Bank of China and the HKMA, in place since January 2009. Eligible collateral to access RMB liquidity includes HKSAR government bonds, RMB