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2026-03-18
Chinese firms are ramping up FX hedging via derivatives as yuan strength threatens export earnings. Net outstanding forward settlement contracts hit a record $107 billion in February, per the State Administration of Foreign Exchange. The surge reflects strong FX conversion, improved US-China ties, dollar weakness, and firm central bank fixing, which have driven the yuan higher since November, alongside robust export performance, said strategist Fiona Lim.
Chinese firms are ramping up FX hedging via derivatives as yuan strength threatens export earnings. Net outstanding forward settlement contracts hit a record $107 billion in February, per the State Administration of Foreign Exchange. The surge reflects strong FX conversion, improved US-China ties, dollar weakness, and firm central bank fixing, which have driven the yuan higher since November, alongside robust export performance, said strategist Fiona Lim.
2026-03-18
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