China derivatives appetite set to grow as PBoC lifts deposit rule

Central bank rule change could cut hedging costs by up to 100bp, traders say


Traders are expecting increased interest in Chinese renminbi foreign exchange forwards following the decision to remove a reserve requirement ratio for financial institutions by the country’s central bank. 

Worried by the soaring renminbi, on October 10 the People’s Bank of China (PBoC) announced it would scrap the FX risk reserve ratio it implemented in 2018 to curb speculation against the currency. 

Under the rule, financial institutions had to set aside 20% of the previous month’s renminbi

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 [email protected] or view our subscription options here:

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: