As Trump Slams China on Yuan, Currency Market Trades Record Amounts

Average daily volume through CBOE quadruples to $1.7 billion
PBOC’s latest move ‘creates more tradeable market’: Bechtel

Rohit Garg, director of Asia FX at Bank of America Merrill Lynch, discusses the dollar, the yuan and the euro.(Source: Bloomberg)

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By Katherine Greifeld and Tian Chen

August 29, 2018 at 4:12 PM UTC

Updated on

August 30, 2018 at 8:40 AM UTC

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Turnover in the offshore yuan has reached unprecedented levels, spurred by U.S. President Donald Trump’s broadsides against Chinese currency practices and the protracted trade dispute between the world’s two biggest economies.

On the FX trading platform of Cboe Global Markets, average daily volume in dollar-offshore yuan jumped to a record $1.7 billion in July, from $421 million a year earlier. EBS Market, NEX Group Plc’s FX trading system, also saw a new high in offshore yuan transactions last month, exceeding the previous peak by 17 percent. The volumes, which represent a portion of the offshore yuan market, surged as the yuan slid for a fourth straight month. The drop raised speculation that China was deliberately weakening the currency amid its intensifying tariff impasse with America.