CNY (RMB) 02 (Feb 16 - Dec 25)

[behappyalways]

Yuan fix vs estimate blows out to a new record of 1,111 pips
https://twitter.com/zerohedge/status/16 ... 0209281396

[behappyalways]

A Panicking China Triggers Biggest Offshore Liquidity Squeeze Since 2018 To Crush Yuan Shorts
https://www.zerohedge.com/markets/panic ... uan-shorts

[behappyalways]

China Cuts FX Reserve Ratio To 4%, Unlocking $19BN, In Most "Visible" Step Yet To Prop Up Slumping Yuan
https://www.zerohedge.com/markets/most- ... cking-19bn


Exclusive-Chinese exporters using currency swaps to retain dollars as yuan sags
https://www.channelnewsasia.com/busines ... um=twitter

[winston]

Yuan at lowest since 2007, pessimism grows

The onshore yuan dropped to a nearly 16-year low against the US dollar yesterday, as pessimism grew toward China's economy and financial markets.

Foreign currency reserves and exports also dropped.

"The yuan will likely remain under significant pressure before economic growth finds a floor and the PBOC will continue to defend the yuan". "However, the PBOC's objective is likely to slow yuan depreciation, rather than defending an absolute level."

Source: Bloomberg

https://www.thestandard.com.hk/section- ... mism-grows

[behappyalways]

China tells brokerages to reduce proprietary FX trading amid yuan weakness - sources
https://finance.yahoo.com/news/china-te ... 28574.html

[behappyalways]

*CHINA STATE BANKS SELL DOLLARS ONSHORE, BOOSTING YUAN: TRADERS
https://twitter.com/zerohedge/status/17 ... 3614795157

[behappyalways]

China Exports Collapse, Prompting Yuan Devaluation Fears
https://www.zerohedge.com/markets/china ... tion-fears

[behappyalways]

Investors, to bet on #yuan's depreciation, typically short the currency by borrowing yuan in HK, selling them for dollars, and later buying them back at more favorable rate.
Higher Hibor means higher borrowing cost
https://twitter.com/CathyYuanZhang/stat ... 0605905322

[behappyalways]

China now settles half of its crossborder trade in renminbi, up from zero in 2010
https://x.com/AgatheDemarais/status/1792495490208022981

[winston]

Yuan surge may trigger fresh volatility

As the world's second-biggest economy ran massive trade surpluses in recent years and local interest rates fell below those in the US, Chinese exporters began to hoard dollars in anticipation that the yuan would weaken.

Some investors also borrowed in yuan to invest in higher-yielding assets abroad, a strategy known as the carry trade.

But a shift in sentiment in favor of the yuan could prompt exporters and speculators to unload dollars and send the Chinese currency surging.

If people see a signal that the yuan could strengthen by 3 percent to 4 percent, they won't be interested in holding the dollar and profiting from the yield gap.

Currently, the market has priced in a yield gap of 3 percent to 4 percent between the currencies of China and the US based on the one-year contract for the dollar-onshore yuan swap.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... volatility