The Traderszone Network

Published in TZ Latest News 29 December, 2015 by The TZ Newswire Staff

China Suspends Foreign Banks’ FX Trading As Offshore Yuan Spread Signals Massive Outflows

For the first time since the August collapse, Offshore Yuan is trading over 1000 pips weaker (relative to the USDollar) than onshore Yuan, signalling outflows are once again escalating. Following the chaos in HIBOR money-markets, Offshore Yuan has crashed to 6.5970 (below August spike lows) to the weakest since Dec 2010. On the heels of this recent divergence between on- and off-shore Yuan, China has suspended some foreign banks from FX trading, we suppose to try and stem the capital outflows.

 

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