RMB Interest Rate Swaps

Introduction 

IIt refers to a practice whereby RMB loan customers, based on RMB market interest rate movements, convert their floating interest rate obligations into fixed interest rate ones, or fixed interest rate obligations into floating interest rate ones. The floating interest rate is usually based on the central bank’s benchmark interest rate for the same period.  

 

 Product Advantages 

This product can be used to lower the borrowing cost of customers, or avoid the increased risks arising from the interest expenses due to interest rate volatility. 

Trading Timeframe 

1-5 years.