The cost of raising loans in yuan in Hong Kong rose to a record

Moscow. January 11. Rates of attraction of loans in yuan in Hong Kong rose Monday to record levels, Bloomberg reported.

Experts note that last week the people’s Bank of China (PBC, the country’s Central Bank) intervened in the foreign exchange market, which has depleted the reserves of RMB in Hong Kong.

Record levels reached interest rates on loans of various maturities – from one day to one year. The growth rates on overnight loans and for a period of one week was the highest since the beginning of collecting these data in June 2013.

Rate money market Hong Kong Interbank Offered Rate for a period of overnight jumped on Monday at 939 basis points (b.n.) – to 13.4%. The interest rate on loans for a period of one week soared 417 b.p. – to 11.23%. The previous highs for these rates were marked at the level of 9.45 per cent and 10.1 per cent respectively.

“Laneway market liquidity in Hong Kong is extremely tough, says an analyst at Standard Chartered Plc in Hong Kong Becky Liu. – We suspected that the NBK intervened last week, and the consequences of these actions for the money market appear on Monday.”

Offshore yuan (auctions which are held outside mainland China) at auction in Hong Kong on Monday has risen in price on 0,26% – to 6,6655 yuan/$1. Last week the rate dropped to 6,7618 yuan/$1, which is only 0.4% below the minimum from September 2010 – 6,7850 yuan/$1.

The value of the yuan at auction in Shanghai on Monday rose by 0.2% to 6,5827 yuan/$1.