China's onshore yuan forwards surge to highest level this year on tighter liquidity

SHANGHAI: China's onshore yuan forwards on Tuesday rose to the highest level this year, pushed up by tighter yuan liquidity in the banking system.

One-year onshore dollar/yuan swap points rose to 1,500 points on Tuesday, the highest since Dec. 30, 2020, up from 1,423 points at the previous close.

The volume-weighted average rate of overnight repurchase agreements, a gauge that measures cash conditions in the financial system, rose to the highest level in more than 14 months on Tuesday.