interbank rates Tag

How long can it last? That’s what watchers of Hong Kong’s markets are asking as the gap between local and U.S. interbank rates widens to the most since 2009. The city’s currency peg to the greenback effectively ties its monetary policy to that of the U.S., making the growing differential all the more curious. Now things may be changing, with forward points and interest-rate swaps in Hong Kong’s dollar starting to bottom out. The reasoning is simple: with the currency having fallen to the middle of its permitted band andRead More
China’s deleveraging dilemma — how to squeeze excess liquidity out of the financial system without spurring a full-blown cash crunch — is facing its toughest test. June is traditionally a tight time for banks because of regulatory checks, and this year, lenders are grappling with an official campaign to reduce the level of borrowing as well. Wholesale funding costs and money-market rates are close to the most expensive in two years, and the 30-day Shanghai Interbank Offered Rate has jumped 44 basis points this month, the worst start to a JuneRead More