August 28, 2014 BY Mike Fox
European financial hubs continue to position for Renminbi future
EU now makes up 10% of global offshore renminbi market
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August 14, 2014 BY Mike Fox
Chinese Yuan long positions largest since late January
Reuters 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…
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August 11, 2014 BY Mike Fox
South Korea: RMB deposits hit record high while USD declines
In 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,…
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August 06, 2014 BY Mike Fox
Standard Chartered: By 2020, 28% of China’s cross-border trade will be settled in renminbi...
Standard 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…
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August 01, 2014 BY Mike Fox
New records set for Yuan trading on Moscow Exchange...
Record 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…
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July 28, 2014 BY Mike Fox
Top global brokerage FXCM adds USD/CNH instrument at last
Leading 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…
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July 28, 2014 BY Mike Fox
China's onshore and offshore RMB market on track to overlap
The 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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July 21, 2014 BY Mike Fox
Report: China’s RMB swiftly developing as major world currency
China's renminbi (RMB) is on track to become the third-largest international currency behind the US dollar and the euro within five years as the eastern nation accelerates promotion of its unit, says a study. Last year, RMB cross-border trade settlement amounted to 4.63 trillion yuan ($746 billion), up 57.5% from 2012. It accounted for 2.5%…
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July 08, 2014 BY Mike Fox
Bank of Communications designated as clearing bank for won-yuan trading
The Bank of Korea said the People’s Bank of China has appointed the Bank of Communications Ltd. as a clearing bank for the direct won-yuan trading in Korea, which we reported on last week. Bank of Communications was founded in 1908, and is one of the largest banks in China. Chinese President Xi Jinping and his…
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July 07, 2014 BY Mike Fox
Frankfurt’s establishment as offshore clearing hub for RMB a huge boost to European corporations says Commerzbank
Frankfurt’s establishment as one of the Eurozone’s first offshore clearing hub for RMB trade settlement along with the city of London will be a huge boost to European corporations trading with China, especially those that are mid-sized, a senior Commerzbank official says. Frank-Oliver Wolf, Global Head of Cash Management and International Business at Commerzbank, comments: “The…
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