Trade Spikes In , Is The Dominant Center

China’s “Belt and Road” initiative and the establishment of the Asian Infrastructure Investment Bank (AIIB) is boosting the use of RMB Yuan in cross-border transactions and investments, said a Moody’s senior vice president.

The International Monetary Fund’s (IMF) upcoming decision whether to include the RMB Yuan in the SDR (special drawing rights) basket will be Key to RMB Yuan’s internationalization and lead to a large increase in investors’ asset allocations to RMB Yuan-denominated assets, he said.

Chinese RMB Yuan trade volumes in London more than 2X’d last year, according to figures from the City of London Corporation Friday, in a further sign of deepening financial links between Britain and China.

Overall RMB Yuan volumes rose 143% compared with Y 2013 as average daily volumes reached $61.5-B, said the City of London, the municipal government of London’s financial district.

Spot trading volumes stood at $18.4-B per day in Y 2014, up more than 3X compared with the prior year.

London has been keen to attract Chinese banks and encourage trade in the yuan to bolster its position as the world’s main centre for foreign exchange trading.

“Our latest research strongly indicates the substantial growth of London’s RMB market in both depth and sophistication, with more active market participants,” said , policy chairman at the City of London.

“The next few months promise to be incredibly important with the launch of China’s new international payments system and ongoing discussions over the Renminbi’s potential inclusion in the IMF’s basket of reserve currencies.”

While London is dominant in global Forex (foreign exchange trading), Hong Kong is still the biggest offshore RMB Yuan center. Daily turnover through its clearing and settlement platform exceeded CNY 880-B  in December 2014, according to the Hong Kong Monetary Authority.

.Have a terrific weekend.

Tags

 
 
 
 

Enjoy this site? Please spread the word :)

RSS
EMAIL
SHARE