The cost of borrowing offshore yuan in Hong Kong's interbank market surged Monday as the amount of spare renminbi in the banking system declined.
Hong Kong Interbank Offered Rate (Hibor) tied to the offshore yuan rose across maturities to their highest levels since the benchmark was created in 2013. The overnight rate climbed to 13.396 percent from 4.0055 percent Friday and the three-month rose to 7.242 percent from 6.333 Friday.
The offshore yuan Hibor is different from the more widely-followed Hibor tied to Hong Kong dollars. Bank of China estimated in March that daily volumes in the offshore yuan interbank market were $5 billion to $8 billion on average. That's a fraction of the Hong Kong dollar-tied Hibor.