China Foreign Exchange Trading Center: In August, the offshore (CNH) renminbi appreciated against the US dollar, and the onshore (CNY) renminbi also appreciated against the US dollar.

September 9, the China Foreign Exchange Trading Center issued a statement indicating that in August, the offshore (CNH) Chinese yuan appreciated against the US dollar, and the onshore (CNY) Chinese yuan likewise appreciated against the US dollar; the daily average price spread (the absolute value of CNY-CNH) was 32 basis points, a decrease of 6 basis points from the previous month; the CFETS Chinese yuan exchange rate index, along with the reference BIS currency basket and the reference SDR currency basket, decreased by 0.31%, 0.57%, and 0.22% respectively compared to the end of last month. The issuance of offshore Chinese yuan bonds decreased compared to the previous month. CNH HIBOR overnight, 7 days, 3 months, and 1 year rates rose by 24 basis points, 2 basis points, 4 basis points, and decreased by 3 basis points respectively from the end of last month. Original text as follows: Overview of Offshore Renminbi Market in August 2026 Summary In August, the offshore (CNH) Chinese yuan appreciated against the US dollar, and the onshore (CNY) Chinese yuan also appreciated against the US dollar; the daily average price spread (the absolute value of CNY-CNH) was 32 basis points, a decrease of 6 basis points from the previous month; the CFETS Chinese yuan exchange rate index, along with the reference BIS currency basket and reference SDR currency basket, decreased by 0.31%, 0.57%, and 0.22% respectively compared to the end of last month. The issuance of offshore Renminbi bonds decreased compared to the previous month. CNH HIBOR overnight, 7 days, 3 months, and 1 year rates rose by 24 basis points, 2 basis points, 4 basis points, and decreased by 3 basis points respectively from the end of last month. 1. Offshore Renminbi Deposits in Hong Kong, Macau, and Taiwan In July 2026, the scale of offshore Renminbi deposits in Hong Kong and Taiwan increased compared to the previous month. Specifically, the scale of Renminbi deposits in Hong Kong was 1,125.36 billion yuan, reflecting an increase of 2.9% from the previous month, while the scale in Taiwan was 106.54 billion yuan, reflecting an increase of 1.2%. The cross-border trade settlement amount in Hong Kong was 1,383.72 billion yuan, an increase of 8.3% from the previous month. The scale of Renminbi deposits in Macau reached 70.66 billion Macanese patacas (equivalent to 59.01 billion yuan), marking a 4.8% increase from the previous month (3.9% increase in yuan terms). 2. Offshore Renminbi Foreign Exchange Market In August, the offshore (CNH) Chinese yuan appreciated against the US dollar, and the onshore (CNY) Chinese yuan appreciated against the US dollar. In the spot market: On August 31, the CNH to US dollar spot exchange rate closed at 6.7180, appreciating 0.52% from the end of the previous month; the CNY to US dollar spot exchange rate closed at 6.7198, appreciating 0.41% from the end of the previous month; the daily average price spread (the absolute value of CNY-CNH) was 32 basis points, a decrease of 6 basis points from the previous month. The CFETS Chinese yuan exchange rate index and the reference BIS currency basket and reference SDR currency basket stood at 101.87, 109.15, and 96.67, reflecting decreases of 0.31%, 0.57%, and 0.22% respectively compared to the end of the last month. In the exchange rate derivatives market: In terms of price, the 1-year CNH swap points closed at -1824 basis points, increasing 6 basis points from the end of the previous month; the 1-year CNY swap points closed at -1823 basis points, decreasing 21 basis points from the end of the previous month. The average absolute value of the onshore and offshore daily swap points spread (CNH-CNY) was 11 basis points, down 5 basis points from the previous month. In terms of trading volume, the HKEX USD/CNH futures standard contract volume in August 2026 stood at 1,373,800 contracts, a decrease of 5.7% from the previous month, with open interest at month-end of 32,100 contracts, an increase of 7.3%. The HKEX USD/CNH options contracts saw a trading volume of 25 contracts, which represented an increase of 2400.0% from the previous month, with open interest at month-end of 213 contracts, an increase of 12.7%. In July 2026, the SGX USD/CNH futures standard contract volume was 4,155,000 contracts, a decrease of 16.7% from the previous month, with open interest at month-end standing at 214,100 contracts, an increase of 6.6%. The SGX USD/CNH options contracts traded at 5,032 contracts, a decrease of 53.9% from the previous month, with open interest at month-end of 10,568 contracts, a decrease of 3.9%. 3. Offshore Renminbi Bond Market In August, there were 100 bonds issued in the offshore Renminbi bond market, a decrease of 13 bonds from the previous month, with an issuance amount of 109.162 billion yuan, a decrease of 29.0%. 4. Offshore Renminbi Money Market At the end of August, the overnight, 7-day, 3-month, and 1-year CNH HIBOR were 1.3815%, 1.4176%, 1.6270%, and 1.6694%, representing increases of 24 basis points, 2 basis points, 4 basis points, and a decrease of 3 basis points respectively compared to the previous month-end. The average interest rate spread between offshore and onshore borrowing rates (HIBOR-SHIBOR) for 1-day, 7-day, 3-month, and 1-year periods were -1 basis points, 2 basis points, 18 basis points, and 21 basis points, showing minimal changes from the previous month, a decrease of 3 basis points, no change, and a decrease of 2 basis points. At the end of August, the implied yields for CNH forward contracts of 7-days, 3-months, and 1-year stood at 1.1448%, 1.3116%, and 1.3626%, respectively, reflecting increases of 1 basis point, 8 basis points, and 6 basis points compared to the end of the previous month. 5. Dynamics of Foreign Institutions in the Domestic Interbank Market As of the end of August, the total number of foreign institutions participating in the domestic interbank foreign exchange market reached 257, an increase of 2 from the previous month. In the spot foreign exchange market, there were 29 foreign clearing banks (unchanged from the previous month), 77 foreign participating banks (an increase of 1 from the previous month), and 70 foreign central bank-type institutions (unchanged). The total number of foreign institutions and their products engaged in the domestic interbank local currency market reached 5,872 (units), a decrease of 4 (units) from the end of the previous month. Among these, there were 181 central bank-type institutions, 504 commercial banks, 251 non-bank financial institutions, 44 medium-to-long term institutional investors, and 4,892 financial institution-structured investment products, with changes of no change, an increase of 3, an increase of 1, no change, and a decrease of 8 products from the end of the last month. In August, the total trading volume of foreign institutions in the domestic interbank foreign exchange market was 2,129.151 billion yuan, a decrease of 27.8% month-on-month. This included spot foreign exchange trading volume of 131.26 billion yuan, a decrease of 28.5%; foreign exchange derivatives trading volume of 634.001 billion yuan, a decrease of 29.3%; and foreign currency borrowing and repos trading volume of 1,363.889 billion yuan, a decrease of 27.1%. In the domestic interbank money market, the total trading volume of foreign institutions was 1,308.520 billion yuan, a decrease of 9.7% month-on-month. In the domestic interbank bond market, the total trading amount of foreign institutions reached 1,406.756 billion yuan, a decrease of 10.5% month-on-month. Among these, the trading volume of foreign central bank-type institutions was 221.807 billion yuan, a decrease of 6.9% month-on-month; foreign commercial banks totaled 974.671 billion yuan, a decrease of 8.4% month-on-month; foreign non-bank financial institutions (including long-term institutional investors) amounted to 50.434 billion yuan, a decrease of 46.4% month-on-month; and the amount of investment products structured by foreign financial institutions was 159.843 billion yuan, a decrease of 8.6% month-on-month. This article is compiled from the China Monetary Market WeChat public account, edited by GMTEight: Chen Wenfang.