China Move to Boost Yuan-Ruble Trading Meets Dire Liquidity
- Bid-ask spread between currency pair widens to fresh record
- Global financial institutions grappling with ruble volatility
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China’s move to double the yuan trading band for the ruble showed little sign of boosting activity in the pair, with liquidity tightening further on Friday.
The gap between the bid-ask price widened to a fresh record of 287 pips, up from 106 on Thursday, according to data compiled by Bloomberg. As of Friday, the currency pair will trade 10% around the fixing rate in a change designed to meet demand for market development, according to the China Foreign Exchange Trade System. That compares with a previous limit of 5%.