Amid the ongoing US-China trade war this year, Chinese exporters chose to hold steady on their hedge ratios, according to dealers, owing to high hedging costs and expectations of a stable spot rate.
Exporters accumulate US dollars from foreign sales, and many have held on to those dollars in anticipation of continued strengthening against the Chinese renminbi that began in 2022.
But when the renminbi began rising after the ‘liberation day’ tariff announcement in April, the significant interest
You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@fx-markets.com
Read More: Chinese corporates shunned hedging during tariff upheaval