Renminbi options volumes plummet as vol grinds lower
USD/CNH volumes fell 84% in 2025 as PBoC currency management took hold
The Chinese renminbi was only a few years ago considered among the most actively traded currencies in foreign exchange options. But volumes have collapsed over the past year, as the People’s Bank of China’s (PBoC) tight management of the currency squeezed implied volatility to its lowest level in a decade.
Vanilla FX options on the US dollar/offshore renminbi (CNH) pair fell roughly 84% between January and November 2025, with average weekly notional volumes dropping from $63.5 billion to $9.9
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: www.centralbanking.com/subscriptions
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Currency
MAS and HKMA aim to green red envelopes over Lunar New Year
Monetary authorities encourage the giving of used notes or electronic cash gifts to cut waste
Kenya warns against ‘cash flower bouquets’
Floral-style gifts made of glued-together banknotes disrupt ATMs and are illegal, says central bank
Dollar remains central to Philippines economy, BSP says
Central bank discusses its responses to currency fluctuations and fallout from political scandal
Bulgaria becomes 21st member of the eurozone
Joining currency bloc is a “sign of belonging”, says governor Radev, as peers offer welcome
Nigeria to discourage cash withdrawals and make deposits easier
Central bank says reform package aims to reduce cash usage and tackle money laundering
Hedge funds cut BoJ bets after torrid year in yen rates
Dealers see lighter positioning after shock October election saw more than $300m of losses, compounding April’s pain
Cash is the tender of last resort – panel
Officials at Central Banking Autumn Meetings discuss risks of long-term outages in era of digital payments
Support for euro hits ‘record highs’ – ECB
Previously sceptical countries have grown to like shared currency, research suggests