FXStreet (Delhi) – Research Team at HSBC, notes that the offshore CNH has recovered sharply, as USD-selling intervention by the PBoC tightens offshore liquidity. Key Quotes “A shrinking CNH deposit pool and the suspension of some onshore-to-offshore RMB funding channels in recent months have helped too. We believe China is sending a strong message to speculators and trying to stabilize RMB depreciation expectations. A narrower basis also demonstrates its commitment to full convertibility. But such periods of policy-induced stability in the RMB is unlikely to be long-lasting as policymakers are embracing a more flexible FX regime. High volatility is the theme for the RMB this year.” For more information, read our latest forex news.