Chinese banks have built a $100bn short against the US dollar to prop up the yuan — and hedge funds are eager to get in on the trade

 

Holger Zschaepitz

@Schuldensuehner

Chinese banks have built a $100bn short against the US dollar to prop up the yuan — and hedge funds are eager to get in on the trade. At the center of it all are transactions known as FX swaps. These have quietly become a key tool for state-run Chinese banks seeking to prop up the yuan during periods of outsized selling pressure. https://bloomberg.com/news/features/2024-09-05/china-s-banks-build-100-billion-short-on-us-dollar-to-prop-up-yuan-cny-usd?utm_source=website&utm_medium=share&utm_campaign=twitter?sref=R17xFhjo…

4:43 PM · Sep 5, 2024

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