China FX forward rules set to boost renminbi options market
PBoC extends reserve requirements on onshore forwards to foreign banks
Recent moves by China's central bank to extend reserve requirements on onshore renminbi forex forwards are likely to accelerate a trend towards corporates using the renminbi options market to meet their hedging needs instead, say dealers.
The changes – which were announced in July and became effective on August 15 – mean the six offshore banks that are allowed access to the China Foreign Exchange Trade System (CFETS) must deposit reserves equal to 20% of the notional of forward positions for a
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