Banks’ yuan borrowing rate hits record HK high

HONG KONG: The rate at which banks charge each other to borrow yuan in Hong Kong surged to a record high Tuesday, with China’s central bank thought to be buying huge amounts of the unit to fend off speculators.

The overnight Hong Kong Interbank Offered Rate (HIBOR) for the offshore yuan jumped 53 percentage points to almost 67 percent owing to tight liquidity. The one-week rate also surged to 33.8 percent from 11.2 percent.