From Citi’s offices in Singapore, Adam Gilmour, the bank’s head of Asia-Pacific currency and derivatives sales, is keeping a watchful eye on Taiwan’s interbank US dollar funding rate, TAIFX. It has risen rapidly over the past six months, from 0.85% for three-month money at the start of November 2013 to 1.53% on April 24. And Gilmour is not alone.
“There is a lot of interest in this,” he says. “From the top of the bank there’s been interest in finding out what is going on.”
That is because