Can anyone explain a bit on how does this work?
I exchanged some Canadian dollar back in 2012 to Chinese RMB, and invested them in hongkong. Back then the exchange rate these forex insititute offered me was only 40 pips away from the spot rate. It was around 6.32 when i exchanged, they gave me 6.28 saying because it's through the offshore RMB market in hongkong, the rate is very good.
So now i'm trying to exchange it back to Canadian dollar, it's around 5.4 or so. What they offer me is 130 pips+ from the spot rate, 5.53.
Am i to understand the offshore RMB market benefits me only if i'm exchanging into the local currency, and it doesn't if i'm exchanging out into a foreign currency?
Would greatly appreciate if anyone can explain to me how does this work, what's the reason behind it?
I've heard story they're opening a offshore RMB market in Toronto soon, how would that benefit future exchanges?
Thank you so much
I exchanged some Canadian dollar back in 2012 to Chinese RMB, and invested them in hongkong. Back then the exchange rate these forex insititute offered me was only 40 pips away from the spot rate. It was around 6.32 when i exchanged, they gave me 6.28 saying because it's through the offshore RMB market in hongkong, the rate is very good.
So now i'm trying to exchange it back to Canadian dollar, it's around 5.4 or so. What they offer me is 130 pips+ from the spot rate, 5.53.
Am i to understand the offshore RMB market benefits me only if i'm exchanging into the local currency, and it doesn't if i'm exchanging out into a foreign currency?
Would greatly appreciate if anyone can explain to me how does this work, what's the reason behind it?
I've heard story they're opening a offshore RMB market in Toronto soon, how would that benefit future exchanges?
Thank you so much