EFTA Document EFTA01461322

These premiums are very low compared to the potential retums if USDCNH turns higher. Implied vol is approx. 3% The complacency and positioning among FX and FX options participants in USDCNH is high • USDCNH 6.8000 6.7000 6.6000 63000 6.4000 6.3000 6.2000 6.1000 0 2012 201.3 20 :ally OlUANMCS-at-ANXII4 Copyngh€ 2,01.4 Elortberg :rate L. I '.cal %nth ',cmn.1O11 of liloonther? Fin:m,:e I P • PBoC has significantly tightened money market rates to curb shadow banking and asset spec