China’s state-owned banks are shorting the dollar to help support the yuan and the trade is saddling them with huge potential losses. Read The Big Take https://t.co/27HHf3g7je
China’s state-owned banks are shorting the dollar to help support the yuan and the trade is saddling them with huge potential losses. Read The Big Take https://t.co/4k7FiIbL9o
Chinese banks have built a $100 billion short against the US dollar using FX swaps to prop up the yuan — handing easy profits to hedge funds along the way. But the trade exposes the nation’s banks to billions of dollars of potential losses
Chinese banks have built a $100 billion short position against the US dollar using FX swaps to prop up the yuan. This strategy is enriching hedge funds but exposes the Chinese banks to billions of dollars in potential losses. State-run Chinese banks have quietly made FX swaps a key tool in their efforts to support the yuan, attracting significant interest from hedge funds eager to capitalize on the trade.