Hong Kong offshore yuan interbank rate hits record highs

      

Hong Kong Interbank Offered Rates (HIBOR) all hit record highs on Monday, led by the overnight rate which spiked to over 13 per cent from 4 per cent Friday, as investors bailed out of offshore yuan for dollars. 

PHOTO: REUTERS

JAN 11, 20161:44 PM

[SHANGHAI] Hong Kong Interbank Offered Rates (HIBOR) all hit record highs on Monday, led by the overnight rate which spiked to over 13 per cent from 4 per cent Friday, as investors bailed out of offshore yuan for dollars.

All HIBOR tenors have been rising recently given that the onshore yuan has slid over 6 per cent since August, with overseas investors worried that Beijing is preparing for a far deeper devaluation in the yuan.

That has caused the offshore market to price the offshore currency at a deep discount to the onshore version .

In addition to the overnight rate rising sharply, all other offshore tenors are at similar record highs, ranging from 11 per cent for the one-week HIBOR to 5.2 per cent for the one-year tenor.

All are far higher than the onshore rates quoted in Shanghai (SHIBOR), where the overnight rate, while up from previously, is still pricing at less than 2 per cent.

REUTERS