VoiceOver users please use the tab key when navigating expanded menus

Navigate the RMB


MANAGING RISKS & EXPOSURES

RMB denominated transactions can lead to unwanted foreign currency and interest rate exposures that need to be managed, particularly in an environment where market forces are playing an increasing role in setting prices. With this in mind, it’s important to understand the key differences between the onshore (CNY) and offshore (CNH) markets for foreign exchange and interest rates, as well as the various tools at your disposal to effectively manage risk.

SINCE AUGUST 2015, THE RENMINBI HAS SEEN GREATER VOLATILITY WITH MUCH LARGER UP AND DOWN DAYS THAN THE PREVIOUS YEAR

 

 

TWO-WAY PRICE VOLATILITY AND RECENT WEAKENING PRESSURES HAVE REFOCUSSED THE NEED FOR STRONG FOREIGN EXCHANGE RISK MANAGEMENT

 

THE RANGE OF FX PRODUCTS AVAILABLE FOR THE RMB MARKET

 

1. CNY SPOT

Relevant documentary proof of the underlying transaction may be required for onshore CNY foreign exchange spot deals.

2. CNY FORWARDS/ FOREIGN EXCHANGE SWAPS

Available to onshore companies to hedge their foreign exchange exposure.

3. CNY CROSS-CURRENCY SWAPS (CCS)

CNY based CCS with maturities of up to five years are available to onshore institutions to manage their currency and liquidity exposures.

4. CNY OPTIONS

A range of CNY structured products have been introduced with rising turnover in the onshore interbank market.

Contact your Relationship Manager for the full report.

related articles


Cross-Border Liquidity Management

In order to support the expansion of cross-border RMB transactions and further internationalise the currency, the PBOC has issued a number of policies to relax controls on cross-border RMB cash pooling and other treasury management activities. At the same time, new cross-border RMB payment infrastructure is positioning the RMB for greater global use in the future.

Read More


The RMB Internationalisation Journey

The internationalisation of the Renminbi (RMB) is vital to China’s long-term success in global financial markets and over the past decade the Chinese authorities have been carefully working to balance the key objectives of a free-floating currency, liberalised capital account and an independent monetary policy.

Read More


Navigating China's Foreign Investment Landscape

Operating a business in China or investing in China presents significant opportunities. Ongoing reform is seeing China gradually move to a registration and filing based system for foreign direct investment with less focus on government approval for certain sectors. In addition, capital market liberalisation is presenting new investment opportunities across fixed income, credit, equities and foreign exchange.

Read More

1) By Regulation
a. Dodd-Frank

2) By Business
a. Foreign Exchange Wholesale Disclosure

3) By Country
a. US Disclosures