Sources confirm access to onshore CNY rates will be available offshore to companies within two weeks, reducing the need for them to open onshore accounts.
Deputy governor of China's central bank offers assurances and a plan for currency convertibility. While the RMB capital market has seen its pricing advantage ebb away, analysts expect it to open up.
The central bank is now making it easier for renminbi to be remitted, but conditions still apply. Treasurers in China are, however, holding fire until more information is available, CT understands.
The Chinese firm had fewer than 180 days to put together the dollar liquidity to pay for GE’s home appliance business. Its trading head tells CT how it was done and why it now uses a specialist FX trading platform
China’s X-border transaction curbs are hindering companies that want to pay off debt offshore and increasing their appetite for X-border guarantee financing. But firms must play nice and not step across the line.
The new renminbi basket has a lower weighting for the US dollar, but the new fix and spot rates against the dollar could mean greater volatility, analysts warn.
US financial institutions will be hardest hit by US regulatory change, but their counterparties and some end users – including corporates – are also likely to feel the impact.