Trading has surged to a nine-year high in China’s onshore swaps market, an increasingly popular one-stop-currency-shop for everyone from foreign to local to state banks and corporates, all happy to bypass traditional FX venues.
Attractive rates for those with dollars to lend, strong demand for the US currency in China’s banking system and even shadow intervention from officials keeping the yuan in check are some of the suggested reasons that have driven one measure of client activity to the highest since 2015.
