Direct Won-Yuan exchange planned

South Korea media is reporting that Korea and China plan to establish direct trading between the won and the yuan, which would eliminate the need to exchange either currency into U.S. dollars when settling accounts. This is a continuing trend we have been witnessing as China has recently been liberalizing their currency market with greater fervor.

Senior presidential secretary for foreign affairs Ju Chul-ki on Wednesday said Chinese President Xi Jinping will sign around 10 agreements with Korea bolstering bilateral business relations, including direct currency exchange. 

rqf2Korean officials forecast that Xi will also grant Korea the Renminbi Qualified Foreign Institutional Investor (RQFII) status, which allows unprecedented access to Chinese onshore equity and fixed income securities markets. The RQFII scheme permits certain licensed international investors to participate in China’s mainland financial exchanges. Experts project Korea’s RFQII investment ceiling at 80 billion yuan. 

Recently, the U.K. was granted RQFII status with an 80 billion-yuan ceiling. Hong Kong has a 200 billion-yuan ceiling and Taiwan 50 billion yuan.

Read Also:

LeapRate is an independent research and advisory firm, specialized in covering the world of Forex trading. We are followed by hundreds of thousands of traders, investors and other FX industry participants via our website, Facebook, Twitter, LinkedIn, RSS and Email Newsletter. Copyright © All rights reserved Finaffiliates Limited Website:
https://finaffiliates.com CEO: Jason Hopgood Company number: 14540579 VAT identification number: GB 431522433

Location: Finaffiliates Limited, Lawrence House, 5 St. Andrews Hill, Norwich NR2 1AD, United Kingdom
Email: [email protected]

SUBSCRIBE TO OUR NEWSLETTER

IMPORTANT DISCLAIMERS

Foreign exchange trading comes with high level of risk. Before investing in foreign exchange, carefully consider your level of experience and risk appetite. CFDs are complex instruments and bring high risk of losing money because of the leverage they provide. No information or opinion contained on this site should be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. Past performance should not be considered evidence or guarantee for future performance. Between 74 and 89% of retail investors accounts lose money.