I posted on the People's Bank of China tightening there screws on CNH shorts here last week:
- The overnight HIBOR yuan funding interest rate is at its highest since February ... Around 5.45%
Well, they are excelling themselves today, having pushed the overnight rate above 8% now.
It's a holiday in China for the next 3 days (September 15-17)
The yuan is die to go into the IMF's SDR basket from October 1, it looks like the PBOC would like to keep the currency relatively stable ahead of then. Maybe tthat's the reason the bank is making life a little uncomfortable for CNH shorts.
