Global Market | Yuan rally pushes Chinese firms to record FX hedging levels

Chinese companies are increasingly turning to foreign-exchange derivatives to shield themselves from currency fluctuations, while a strengthening yuan threatens to squeeze export earnings, as per a report by Bloomberg. According to data from China’s State Administration of Foreign Exchange, net outstanding forward settlement contracts climbed to $107 billion at the end of February, marking the highest level since records began in 2010, Bloomberg reported.…

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