RMB volatility slows corporate hedging activity

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

Chinese currency

The depreciation of renminbi (RMB) against the US dollar over the past two months engineered by the People's Bank of China (PBoC) has dampened demand from corporate clients to hedge renminbi 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, renminbi has fallen against the US dollar, with USD/CNY trading at 6.22 on March 24.

However, despite the recent currency volatility and the

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 customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/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 FX Markets 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 indvidual account here: