Sentences with phrase «offshore yuan»
China's market turmoil put the spotlight on a quirk of the mainland's currency: the offshore yuan isn't always in tune with its onshore peer.
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Bank of China estimated in March that daily volumes in the offshore yuan interbank market were $ 5 billion to $ 8 billion on average.
The Hong Kong Interbank Offered Rate (Hibor) tied to the offshore yuan surged as high as 67 percent for overnight lending, the highest since it was established in 2013.
But one of the requirements of the SDR is that the onshore and offshore yuan need to converge toward a free floating rate.
Not exact matches
The goal is to establish Vancouver as the first offshore settlement centre for the Chinese currency renminbi — also known as RMB or yuan — in North America, Clark said.
With no offshore hubs yet established in North America, a Vancouver centre could attract a sizeable chunk of the international yuan market, which currently mostly runs through Hong Kong.
The dollar has also made fresh advances against the offshore Chinese yuan (the rate that isn't as tightly controlled by the People's Bank of China), indicating a fresh wave of speculation against the Chinese currency.
The yuan plunged to a five - year low in offshore trading on Wednesday.
In late trade on Wednesday, the spread between the onshore yuan and offshore spot widened to about 1,000 pips, the highest level since September 2011, implying foreign investors are pricing in deeper depreciation to come.
Speculators may have also been purchasing yuan in the offshore market and then selling it in the onshore market to take advantage of the arbitrage.
At Wednesday's close, the dollar was worth 6.5648 yuan offshore and 6.5743 yuan onshore.
Borrowing offshore in Yuan.
For example, the Bulgaria - based Bitcoin exchange BTC - e announced Sunday that it would start trading in offshore Chinese yuan.
The Peoples Bank of China recently introduced a Capital flight law to curb Yuan moving offshore from $ 50million to $ 5million — anything over $ 5million is flagged and government approval is required, clamping down on Mergers and Acquisitions.