14 Jan 2016
RMB-based HK interbank lending rate back to normal levels
FXStreet (Bali) - RMB-based Hong Kong interbank lending rate has come down to a one-week low at 3.61% today, near the average of the last 6 months.
The drop means that borrowing offshore yuan overnight is more affordable, which could partly explain the upward pressure seen in USD/CNH, as the pair breaks above 6.60.
The overnight Yuan HIBOR traded as high aas 66.8% during Tuesday, as PBOC intervention in USD/CNH (epic squeeze of CNH shorts) led to CNH liquidity dry up.
The drop means that borrowing offshore yuan overnight is more affordable, which could partly explain the upward pressure seen in USD/CNH, as the pair breaks above 6.60.
The overnight Yuan HIBOR traded as high aas 66.8% during Tuesday, as PBOC intervention in USD/CNH (epic squeeze of CNH shorts) led to CNH liquidity dry up.