By Saikat Chatterjee
HONG KONG, May 2 Latest reforms in the offshore
yuan markets will help banks overcome periodic shortages of cash
and signals a new pipeline of products in a market that has
stagnated in recent quarters.
In a series of steps last Thursday, the Hong Kong Monetary
Authority, the city's de-facto central bank, removed trading
limits and dismantled mandatory reserve requirements for banks
trading the offshore yuan.
The measures taken were essentially two-pronged in approach:
to help investors manage their interest rate exposure on the
back of a growing bond market and offer banks more yuan funds to
boost their trade settlement business.Even as the yuan hits a series of record highs guided by the
People's Bank of China, doubts are rising on how far the
currency can go with valuations already near the top end of
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THOMSON REUTERS SPEED GUIDES