Chinese exporters urged to ramp up US dollar hedges
Dealers join China’s Safe in sounding alarm at mounting unhedged FX exposures
Dealers say Chinese exporters remain reluctant to hedge their burgeoning US dollar-denominated revenues, despite a strengthening renminbi and a warning from the country’s foreign exchange regulator telling them to pay more attention to the management of currency risks.
“We see some Chinese exporter clients that have a lot of dollars, and we ask them, ‘Why don’t you hedge some of this?’ says George Sun, head of global markets for Greater China at BNP Paribas. “But, in fact, foreign exchange
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