Offshore Renminbi Market Liquidity Is Tight Or Too Urgent Because Of The Central Bank.

The RMB lending rate of Hongkong's interbank market for 7 days or more rose on Monday, as the Central Bank of China intends to impose a deposit reserve on the renminbi held by foreign financial institutions since January 25th, thereby tightening the liquidity of offshore renminbi.

Hongkong Financial Market Association CNH Hibor each term

Fixed price data show that one cycle interest rate rose 370 basis points to 11.9%, and the one month interest rate rose 251 basis points to 11.84%.

Last week, they once surged to a record high of 33.39% and 15.7%, as the central bank's efforts to defend the renminbi in offshore markets tightened the supply of offshore renminbi (CNH).

Overnight CHN Hibor fell 32 basis points to 1.78% in the year, and last week surged to a 66.82% high of 66.82% last week.

Offshore renminbi this morning

The Asian market opened up a 6.58 pass at the beginning of the session, and now it is 6.5792, up 350 points from the end of the New York session last Friday.

According to Reuters, Peng Bo and other media reported yesterday, China

From January 25th this year, we will take part in the RMB deposit of foreign banks to deposit RMB deposits in the domestic agency banks to carry out the normal deposit reserve ratio, that is, the domestic agent banks carry out the current statutory reserve requirement ratio, so as to prevent financial risks and promote the steady operation of financial institutions.

Zhou Hao, an economist at Commerzbank in Singapore, commented that the central bank would collect the deposit reserve for Renminbi deposits of offshore financial institutions in domestic institutions according to domestic standards, and may raise interest rates on CNH in short term to raise the cost of shorting the renminbi.

"In the short term, the new rules will tighten offshore liquidity, because offshore banks have only one week to stir up reserves," said David Qu, an interest rate strategist at Australia's new galaxy in Shanghai.