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Hedging Renminbi with EUR. What is the reason why FX traders sometimes go long EUR to hedge shorts in RMB?

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    $\begingroup$ Where did you read that? $\endgroup$
    – AKdemy
    May 28 at 7:38
  • $\begingroup$ Chats with some traders. I know cny is indexed to usd and other ccys. So I was wondering if there was any relationship between eur and and cny = f (usd,..) $\endgroup$
    – Student
    May 28 at 11:23
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This is not an answer but I cannot post the comment as it is too long with the link:

Never heard of this. Maybe best to ask the traders you chatted to and post your answer afterwards here. Simply looking at a chart makes me wonder how this should work.

If a European firm hedges their EURRMB exposure by selling/buying RMB to buy/sell EUR (forward), that is just a normal fx (forward) transaction but not hedging your RMB short position with EUR.

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