Sorry, no yuan! That's the message from several Hong Kong money changers as speculators scramble to stock up in anticipation of the currency rising further.
A local bank manager is not surprised that yuan stocks have ran out as supply is tight.
"People are banking on reports that the United States is pressing for a 10 percent yuan appreciation, despite Beijing saying any appreciation will be gradual," he told The Standard on condition of anonymity. "People want to make a fast buck since interest in the Hong Kong dollar is low. So the yuan is a sure bet for anybody."
A source at the Hong Kong Monetary Authority said the shortage at money changing counters could be due to another factor - hoarding.
"Money changers are expecting the yuan to appreciate faster and sooner, and so they are holding on to their stocks," the source said. "The fact that there is no cap on conversions to yuan has put them a difficult position in both quoting and selling of the currency.
"They obviously do not want to sell large amounts of yuan."
Local banks have confirmed they have an unlimited supply of yuan, which they get directly from the mainland central bank, the People's Bank of China.
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