Serious Yuan interest rate at 100%, China tua kee lah!

[EnBloc]

https://www.bloomberg.com/news/arti...-yuan-as-china-chokes-flows-supports-currency

Traders Scramble for Yuan as China Chokes Outflows

China’s efforts to choke capital outflows are beginning to pay off, with the offshore yuan surging the most on record as traders scrambled for a currency that’s becoming increasingly scarce outside the nation’s borders.

The yuan gained 0.5 per cent at 6:48 p.m. in Hong Kong, taking its two-day move to 1.8 per cent, poised for its biggest gain in data going back to 2010.

The overnight deposit rate in the city rose as high as a record 100 per cent, while the spread between the offshore and onshore exchange rates reached the widest since 2010.

Bloomberg News earlier reported Chinese policy makers were encouraging state-owned enterprises to sell foreign currency.

 

[AsiaDK]

The overnight deposit rate in the city rose as high as a record 100 per cent, while the spread between the offshore and onshore exchange rates reached the widest since 2010.

I have been thinking, did they actually win or lose the war by doing so. It may offer some short-term relief but such move effectively tells Yuan depositors that they are truly in trouble. Long-term investors of yuan will likely exit. A better solution for China is to reduce their offshore RMB settlement centres from 6 to 3, retaining HK, UK and Taiwan.