ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Currencies

Yuan spikes as China scrambles to stem capital exodus

Overnight borrowing costs top 100% in Hong Kong offshore market

The People's Bank of China, China's central bank, seeks to prop up the yuan through various means.

HONG KONG -- The offshore yuan is surging against the dollar as Chinese authorities pull out all the stops to crack down on capital outflows by corporations and individuals alike.

The yuan traded for more than 6.82 per dollar on the Hong Kong currency market Thursday, a 2% appreciation over two days. At the same time, the overnight Hong Kong Interbank Offer Rate was fixed at 38.3%, up from Wednesday's 16.9% and marking the highest level in roughly a year. In the open market, borrowing costs reportedly topped 100% at one point in afternoon trading.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more