Are CNH Execution Costs Normalizing?

The volatility and uncertainty related to the Covid 19 outbreak led to significantly increased FX transaction costs for the Buy-Side dealing in CNH for most of the first half of 2020. FX Transparency’s Peer Universe™ shows the cost of dealing in most other currencies normalizing by the end of April, while geopolitical risks and trade tensions have led to persistent illiquidity, hurting execution quality in CNH for an extended period. By the middle of June, FX TCA show costs reverting to the normal range.