Deutsche Bank says new HKMA rules to boost offshore renminbi

Deutsche Bank expects the new rules to improve the efficiency of renminbi clearing and encourage banks to expand their renminbi FX derivatives businesses.

The Hong Kong Monetary Authority’s (HKMA) announcement last Friday about further refinements to existing offshore renminbi (or CNH) market regulations in Hong Kong is highly significant, both with regard to its implications for the development of the offshore renminbi market as well as its impact on CNH/CNY market dynamics, according to Deutsche Bank’s CNH Market Monitor.

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