Fed funds rate vs. Shibor spread is now at its highest level since the global financial crisis.

via @TaviCosta:

At that time USDCNY exchange rate was at 7.25!
Today, it’s only 6.79.

This divergence in monetary policy puts tremendous pressure on the PBOC to devalue its currency.

Honest question:

If Chinese growth is picking up again, why is the $CNY share of global payments via swift declining year to date?

It’s now below 2%!