Offshore CNY deliverable forwards in Hong Kong to outgrow NDFs
Rising offshore renminbi interbank rates in Hong Kong have made its deliverable forwards market the cheapest forum compared with NDFs and onshore forwards for corporates to hedge, bankers say
A gradual flattening of the offshore deliverable CNY forward curve, interpolated based on the offshore renminbi deliverable in Hong Kong (symbolised as CNH), has given the one-year-old offshore forward market the potential to overtake non-deliverable forwards within three years.
This view is increasingly being held among bankers in Hong Kong, as the combined volume of CNH spot and forwards traded in the city now averages $3 billion per day – on a par with CNY NDFs, which was the dominant
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