China broadens yuan spot-clearing services in push for wider global use

By Reuters News

SHANGHAI, Sept 17 (Reuters) - China expanded its central clearing system this week to allow spot yuan transactions against more foreign currencies, marking another step in Beijing's efforts to promote the currency's internationalisation and wider global use.


Here are some details:

  • Shanghai Clearing House began offering central counterparty spot clearing services for the Singapore dollar, New Zealand dollar and Thai baht on September 14, according to a statement published on its website.

  • Trading volume in the three newly added currencies totalled approximately 996 million yuan ($148.49 million) on the first day.

  • The move is aimed at "actively implementing and promoting the high-quality development of Belt and Road currencies in the interbank foreign exchange market" while further expanding the coverage of its foreign-exchange clearing services, the Shanghai Clearing House said.

  • It has facilitated the timely release of trading credit limits for market participants, "stimulated trading activity, improved clearing and settlement efficiency, and helped market participants manage risk in a centralised manner," it said.

  • The clearing house had already offered central clearing for spot yuan transactions against the U.S. dollar, British pound, Hong Kong dollar, Japanese yen, Australian dollar and euro.

($1 = 6.7077 Chinese yuan)

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