RMB Becomes Asia'S Most Attractive Arbitrage Currency

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< p > the SHARP ratio released by Bloomberg shows that the renminbi has become the most attractive arbitrage currency in Asia, and this index is adjusted by the rate of return.

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< p > data show that since the second half of this year, the SHARP ratio of RMB has been 8.6%.

By comparison, the Thai baht is 3.9%, and the India rupee is 0.1%.

In emerging markets, SHARP accounts for only 25% of Argentina's yuan.

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< p > "RMB arbitrage trade is attracting people again, China's economic momentum is stronger, and the fluctuation of RMB is still low," said Ben Yuen, head of fixed income division of Bank of China Asset Management in Hongkong, Hongkong.

"The demand for point debt and the expectation of RMB appreciation are rising and falling simultaneously, and the appreciation of RMB is expected to rise recently."

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< p > in fact, in the past few years, because of the low a href= "//www.sjfzxm.com/news/index_cj.asp", the interest rate less than /a, the environment and the low volatility, it has become one of the investment targets favored by speculators.

Investors earn profits by borrowing low yield currencies and investing in high-yield currencies.

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< p > however, the people's Bank of China issued documents this year. Since March 17, 2014, the floating rate of RMB to us dollar exchange rate in inter-bank spot foreign exchange market has expanded from 1% to 2%, that is, the daily trading price of RMB against the US dollar in the inter-bank spot foreign exchange market fluctuated within 2% of the middle price of that day.

The move has also made the arbitrage trade on the RMB gradually cool this year.

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< p > Liu Dongliang, senior analyst of China Merchants Bank's financial market, said in an interview with the first Financial Daily reporter that the action of the central bank will make it difficult for the RMB to appreciate unilaterally and the two-way volatility will become the main trend. The expansion of the fluctuation range will effectively combat the RMB interest spread paction.

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< p > "if the fluctuation of RMB reflects China's need to reduce excessive interest rate trading and leverage, then we need to maintain this momentum, which will definitely reduce the attractiveness of interest rate trading.

But as long as there is a clear margin, this paction will not disappear. "

Aaron Carol, Singapore's emerging market hedge fund Lumen Lumen Advisors LLC, said.

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However, in the second half of this year, the situation of RMB reversed again. P

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< p > first, the one-way depreciation has become a one-way appreciation.

Data show that since July 1st, the US dollar exchange rate has declined from 6.2050 to 6.1434 at present, a drop of 616 basis points, of which most of the time the renminbi was in a state of appreciation.

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< p > secondly, in the first half of this year, the strong volatility of RMB began to weaken gradually, and the fluctuation of RMB exchange rate was becoming more and more moderate.

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< p >, therefore, the above two reasons have a combined influence, and the arbitrage paction of < a href= "//www.sjfzxm.com/news/index_s.asp" > RMB < /a > is emerging again.

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