Hong-Wei’s savvy TWD-CNY deposit arbitrage play
Taiwan elevator Manufacturer Hong-Wei is using benchmark-rate gaps on deposits to earn interest and establish a natural hedge.
Hong-Wei Electrical Industry & Co (Hong-Wei) has recently adopted a strategy of depositing renminbi and US dollars in Taiwan-based accounts at a rate of 2.5%, and borrowing in New Taiwan dollars in Taiwan at a rate of 2%.
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