RMB volatility slows corporate hedging activity

Demand for structured forwards down by 80% as corporates wait for RMB to stabilise, dealers say

Chinese currency

The depreciation in the RMB against the USD over the past two months engineered by the People's Bank of China (PBoC) has dampened demand from corporate clients to hedge RMB exposures, say dealers.

Following the band widening by the PBoC on March 17 to allow the onshore spot rate to appreciate or depreciate by 2% of the daily fixing on each day, the RMB has fallen by 2% against the US dollar since the start of February with USD/CNY standing at 6.22 on March 24.

However, despite the recent

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

Stemming the tide of rising FX settlement risk

As the trading of emerging markets currencies gathers pace and broader uncertainty sweeps across financial markets, CLS is exploring alternative services designed to mitigate settlement risk for the FX market

Most read articles loading...

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