Try as they might, global lenders cannot coax their Chinese bank counterparties to compress the large books of renminbi swaps they’ve racked up between them in recent years. At a time when Chinese corporates are bingeing on dollar debt, fuelling demand for currency swaps, that leaves foreign dealers with a large and increasingly costly headache.
“For currency swaps, we are already finding it quite difficult. We are easily running out of limit against [Chinese bank counterparties], and they are
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