Regulators step up currency surveillance
Frances Cheung, senior strategist at Credit Agricole in Hong Kong, believes the hardest hit will be foreign banks, given speculation the foreign exchange forward positions will be limited to 50% of capital for domestic banks, and 250% for foreign banks.
“The FX forward position-to-capital ratio was reportedly at about 17% for domestic banks, and more than 280% for foreign bank branches as at February,” said Cheung. “Should such caps on the ratio be imposed, foreign banks would feel most of the
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