China Inc. Misses Best Shot to Repay $430 Billion as Yuan Drops
- Rush to repay dollar debt risks worsening capital outflows
- RBC says debt has dropped from $570 billion, hedging improved
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The best time for China Inc. to repay its dollar debt may be coming to an end.
The greenback is rallying after its worst quarter since 2010, threatening to drive up costs for companies seeking to either repay U.S. currency borrowings or hedge exposure. The yuan declined 1 percent since March 31, following a 2 percent rally between February and March. Royal Bank of Canada and Credit Suisse Group AG see more depreciation.