China will start direct trading between the yuan and the euro as soon as tomorrow as the world’s second- largest economy seeks to spur global use of its currency. The move will lower transaction costs and so make yuan and euros more attractive to conduct bilateral trade and investment, the People’s Bank of China said…
Read moreThe Singapore Exchange (SGX) is adding new Asian foreign exchange futures contracts on the Chinese yuan, Japanese yen and Thai baht, to further augment its successful suite of forex offerings. The new Asian FX contracts will be available for trading from Oct 20th. The expanded suite is in line with G20 recommendation to encourage trading…
Read moreEU now makes up 10% of global offshore renminbi market
Read moreReuters latest Asian currency survey reveals that bullishness in the Chinese yuan hit a near seven-month high, while sentiment on most emerging Asian currencies slightly deteriorated in the last two weeks on global economic risks, a Reuters poll showed on Thursday. Sentiment on the yuan turned the most optimistic since late January, as investors piled…
Read moreYuan clearing will be extended to 20.5 hours, increasing London and New York's ability to conduct more business and increasing access to yuan liquidity.
Read moreIn a telling info-graphic from the Korea Herald, they point to the high interest rates that RMB deposits are paying thus creating a higher demand for holding accounts denominated in renminbi rather than low interest paying currencies such as the dollar. In South Korea, renminbi deposits amounted to $16.2 billion according to the central bank,…
Read moreStandard Chartered Bank has issued a bold statement saying that by the year 2020, roughly 5 1/2 years from now, 28% of China's cross-border trade will be settled in renminbi. They have issued a glowing graphic to illustrate their prediction (see below): To note, just today China’s yuan strengthened and rose beyond the central bank’s…
Read moreRecord volumes have been posted in trading of the Chinese Yuan/Russian Ruble (CNY/RUB) on Moscow Exchange's FX Market. The trading volume on July 31st was CNY 665.6 mln (RUB 3.8 bln), the largest daily volume since the launch of yuan trading on Moscow Exchange in late 2010. Trades were made in all CNY/RUB instruments: spot…
Read moreLeading FX Brokerage FXCM officially added liquidity to the offshore renminbi. Here is info on FXCM's offering. VITAL STATISTICS Target Spread 26-27 pips Margin Requirement $50 per lot Minimum Lot Size CN¥1,000 (1k) Pip Cost $0.016 per lot Average Daily Range 100 pips in 2014 Hedging Capability: You can go long or short yuan in…
Read moreThe offshore RMB market has evolved rapidly since 2010 and there have been periods of significant pricing dislocation between onshore and offshore forex and interest rate markets.
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