HSBC uses derivatives to drive development of RMB market

The seemingly inexorable upward move of the renminbi against the dollar ended in February this year with a sudden drop that caught market players by surprise; the renminbi fell nearly 4% against the US currency in a matter of weeks. One month later, the People's Bank of China doubled the one-day trading band from 1% to 2% adding another layer of uncertainty to a previous one-way bet. One trend remained constant, however: the increasing internationalisation of the currency – the decision in