The cost of hedging the Trump shock

Why Chinese Banks Are Running Out Of Dollars

In the past few years, a funding problem has emerged for China’s biggest commercial banks, one which is largely outside of Beijing’s control: they’re running low on US dollars.

The added FX exchange risk due to sudden funding patterns leading to a potential earlier shock than planned.  The simple cure  is my MMT contract, it insures the Trump shock is a betable process over 15 years. So there is no huge hedge wedge facing us over the next two years, it is spread out over 15 with a renewal option.