The overnight HIBOR yuan funding interest rate is at its highest since February
- Around 5.45%
- The PBOC is squeezing offshore yuan shorts to try to restrain bearish yuan sentiment
- Now that the G20 summit is over traders are betting the PBOC will allow more yuan devaluations
USD/CNH was sold earlier (some traders bought CNH to cover funding needs) but has since more than reversed:
(5 minute chart)
