Date
19 October 2017
Gary Leung attributes the surge in foreign exchange transactions to the yuan devaluation and the removal of the daily trading limit for retail clients. Photo: HKEJ
Gary Leung attributes the surge in foreign exchange transactions to the yuan devaluation and the removal of the daily trading limit for retail clients. Photo: HKEJ

Yuan devaluation drives Hong Kong forex transactions

Renminbi transactions in Hong Kong have soared since the surprise devaluation of the Chinese currency in August.

The increase has been helped by the scrapping of the daily transaction limit for retail clients.

Daily average transaction volume rose 176 percent in the 10 days after Aug. 11 from the 10 days before the devaluation, the Hong Kong Economic Journal reports, citing Gary Leung, global market deputy general manager of BOC Hong Kong (Holdings) Ltd. (02388.HK). 

The average transaction volume per deal was up 400 percent. 

The removal of the daily transaction cap allowed depositors to sell renminbi as much as they wish after the devaluation, Leung said.

Meanwhile, the three months before and after the currency reform saw a 460 percent increase in monthly average transaction volumes. 

The single-month expansion in August is 10 times the average increase in the three preceding months. 

[Chinese version中文版]

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