Interbank Market News Scan for 15 July 2022 as of 9:52 am EDT. Is China refueling its carry trade?

FX rates as of 9:34 am 15 July 2022

Currency PairExchange Rate
GBP/USD1.1833
USD/XCD2.7000
USD/JMD149.9110
USD/DOP53.9694
EUR/USD1.0017
USD/JPY138.7240
USD/CNH6.7535
DXY108.25

Source: OANDA 

Interbank, China, carry trade. “Easy liquidity conditions in China are fueling a lucrative carry trade in bonds, with traders betting the gains will be sustained despite signs the central bank is moving toward normalizing monetary policy.” Yahoo! Finance. https://finance.yahoo.com/news/china-bond-traders-cashing-easy-005924044.html?fr=sycsrp_catchall

Interbank, Pakistan. “The rupee recovered 8 paise to settle at 79.91 (provisional) against the US currency on Friday, tracking heavy buying in domestic equities and weakness in the greenback overseas.” MSN. https://www.msn.com/en-in/money/markets/rupee-recovers-8-paise-to-close-at-79-91-against-us-dollar/ar-AAZBOTX

Interbank, China, RMB, Shibor. The overnight Shanghai Interbank Offered Rate (Shibor), which measures the borrowing cost of China’s interbank market, increased 1.6 basis points to 1.211 percent Friday. China.org.cn. http://www.china.org.cn/china/Off_the_Wire/2022-07/15/content_78325114.htm

Disclaimer: This blog post should not be construed as legal advice or an agreement to provide legal or political analysis.  To set up a consultation, contact us at altondrew@altondrew.com.

We appreciate your readership and support.  Feel free to donate to us via PayPal or support our advertisers. We are also seeking sponsors for our blog.  Contact us at altondrew@altondrew.com.