Taiwanese banks face funding hit on renminbi-linked Tarfs

Regulator warns banks on structured currency trades as renminbi hits 18-month lows

taiwan
Taipei

International dealers fear Taiwanese banks are facing potentially huge US dollar funding needs tied to the depreciating Chinese renminbi – a result of back-to-back target redemption forward (Tarf) trades with international dealers.

"There is a lot of interest in this – from the top of the bank there's been interest in finding out what is going on," says Adam Gilmour, head of Asia-Pacific currency and derivatives sales at Citi in Singapore.

The trades have also caught the attention of Taiwan's

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: