LONDON--(BUSINESS WIRE)--China’s stake as the world’s premier economic power is expected to gain traction as the county continues to liberalise its economy and implement reforms that bolster its status among developing economies. And, according to TradeNext, 2015 could prove to be a turning point for the world’s most populous nation as the acceptance of the Chinese Yuan gathers shape with new financial centres in Europe and Asia opting to support transactions in Renminbi.
The Chinese Yuan became the tenth most active currency pair measured globally by the bank of international settlements in is 2013 triennial survey, the latest figures are expected to have risen by 15% as Yuan clearing and settlement saw additional players.
Rui Jin, regional manager for Far East and Mainland China at TradeNext commented: “China is reviewing its policies both internally and externally and despite having a temporary slowdown in its GDP it will look to strengthen its position among international peers, with particular focus on the Chinese Yuan, a top-ten traded currency.”
The trend for internationalisation of Renminbi (RMB) will pick up further in 2015. The IMF’S Special Drawing Rights (SDR) currency basket may include Renminbi in November 2015 and ten more clearing banks could be appointed in 2015, especially from the BRICS countries. Currently, the Renminbi Qualified Domestic Institutional Investor (R-QFII) programme is available in ten countries/regions, and direct FX trading in Chinese interbank market.
The pace of Renminbi Internationalisation is likely to stay strong. One-third of the world’s financial institutions have been using the Renminbi for cross-border payments, according the SWIFT. The China Securities Regulatory Commission (CSRC) has approved the Renminbi-denominated Crude Oil Futures contracts in December 2014, which will be traded on the Shanghai Futures Exchange and tradable to both domestic and foreign investors.
TradeNext offers a number of emerging market currency pairs including the USD CNH which is available on its MetaTrader 4 platform. Chinese speaking traders can access the firms dedicated portal https://cn.tradenextglobal.com/ and communicate directly with Mr Jin for information about the firm’s products and services.
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