The Cost Of Shorting Renminbi Is Rising Again.

On Wednesday, after the afternoon of New York, the offshore renminbi was oscillating between 6.5250-6.5300, almost parity in the onshore RMB; the open market this week had a total of 595 billion yuan reverse repurchase expired, and a large number of them will expire on Thursday.

Faxing expects 7 days

In the near future, it will rise from the current 2.29% position to 2.5%.

The Central Bank of China set the central parity rate of the RMB against the US dollar at 6.5237 on Wednesday, down 107 points compared to the 6.5130 yuan on Tuesday, while the previous Tuesday's median price was only 12 points lower than that of Monday.

Under the Central Bank of China, the renminbi has been sharply lowered.

The exchange rate led to a rapid decline in the opening of the offshore renminbi, and then maintained at around 6.5250 yuan.

But on the shore, the US dollar is RMB.

The difference between the offshore dollar and the RMB exchange rate is small, indicating that the market's expectation of RMB depreciation has not increased.

Chinese banks may be more inclined to retain more offshore renminbi liquidity in the short term.

According to the data released by China foreign exchange trading center, the onshore RMB fell 0.16% to 6.5290/ U.S. dollars on Wednesday, and the amount of offshore renminbi trading increased by 13.87% to 15 billion 800 million dollars on Wednesday.

Offshore market cost of capital rose, overnight HIBOR rose to 3.401%, the highest in a month; the shorting cost of offshore RMB terms rebounded from Tuesday low, and the implied yield of one cycle limit rose from 5% to 6.13%.

Liu Jie, senior interest rate strategist at Standard Chartered Bank, predicts that offshore renminbi liquidity will only tighten slightly from the current situation and will not reproduce extreme tension.

In a report to clients, Mizuho bank strategist Zhang Jiantai wrote that after the Spring Festival, the central bank's open market operation was significantly reduced, which could trigger the market's concern that offshore liquidity would be pmitted offshore.