EBS BrokerTec and Icap Information
Services (IIS) have launched EBS CNH Benchmark, the first fully electronic,
trade-backed reference rate for the offshore Chinese renminbi (CNH) market,
according to Icap.
The benchmark is published daily at 16:30
Beijing/8:30 GMT, and is timed ...
The Chinese Renminbi has seen a slight slowdown in terms of global payments by value in June, being surpassed by the Canadian dollar and standing as the sixth most popular currency, according to Swift.
Swift data shows that the RMB ...
The Chinese offshore convertible renminbi
cannot currently be considered a safe haven currency, and neither does it
appear to be on the path of becoming one, a study published by the Federal
Reserve Bank of Dallas suggests.
The study analyses ...
The UK referendum on European Union
membership brought with it a wave of volatility and uncertainty, however FX
markets have rather settled back since the initial shock. Implied volatility
levels are at almost two year lows – lower in fact that ...
from Swift shows that in July RMB bounced back to its position as the fifth
most active currency for global by payments by value, with a share of 1.90%, a
slight increase from 1.72% in June 2016.
the data shows that ...
Nearly a quarter of global businesses are now using the renminbi (RMB) to trade with China, yet only two in five firms are aware of the trade initiatives being put in place by the Chinese government to facilitate cross-border trading, a HSBC Commercial Banking survey shows.
Of the 1,600 decision-makers polled, 24% of companies that are trading with China say they now do so using the renminbi, up from 17% last year.
But just 41% said they were aware of the government’s flagship Belt and Road initiatives, intended to generate USD2.5 trillion of cross-border commerce annually through policy and infrastructure developments, including plans to boost trading connectivity.
CFH Systems, which produces online trading services for financial institutions primarily for FX and CFDs, is set to acquire Capital Market Automation Provider's (CMAP) 49% stake in its organisation.
CFH formed the joint venture in November 2015, but now says that it has the infrastructure and local market knowledge to continue developing the company alone. Announcing the launch last year, CFH Systems said it formed the joint venture with CMAP to “accelerate market penetration in China”. At the time, the firm said the partnership offered institutional clients the benefits of CFH’s ClearVision technology, combined with CMAP’s local network infrastructure and specialisation in MT4-hosted services.
With new data showing that RMB trading grew 81.8% over the past three years, Galen Stops looks at the continued development of the currency and the growth of FX trading in the APAC region.
The growth of Chinese renminbi (RMB) trading in the global FX market has been well documented by a variety of sources, whether anecdotally by traders, logically by economists or quantifiably by trading venues and other data providers.
It was therefore no surprise when the latest Bank for International Settlements (BIS) triennial survey showed that the average daily turnover of RMB has grown from $120 billion in 2013 to $202 billion as of April 2016, an 81.8% increase.
Donald Trump’s position on the currency manipulation provisions in US trade deals could lead him into direct conflict with US Treasury once he assumes the presidency, according Dick Cunningham, a senior international trade partner at Steptoe & Johnson’s Washington office.
Speaking on a webinar examining some of the implications of this week’s US presidential election, Cunningham noted that Trump has vowed to kill the proposed Transatlantic Trade and Investment Partnership (TTIP).
One reason why Trump has criticised the TTIP in the past, said Cunningham, was because although it contains a currency manipulation provision, the provision is not enforceable.
Bob Savage, CEO of CCTrack Solutions, talks to Profit & Loss deputy editor, Galen Stops, about why geopolitical unrest this year hasn’t translated into more FX volatility.
This year has been marked by a high degree of geopolitical unrest and uncertainty, with Britain voting to leave the European Union, Italian banks struggling ahead of an important referendum later this year, questions being raised about the future of Europe and a divisive US presidential election.
Meanwhile the war in Syria continues, ISIS has not been defeated, Russia is considered to be actively attempting to expand its sphere of influence and there is the suggestion that some long-time US allies in Asia – such as the Philippines – could drift closer in their relations to China in the coming years.
Comments made Sunday by US president-elect Donald Trump on Twitter have sparked fresh speculation as to whether his administration will label China a currency manipulator once he is in office.
China lodged a formal complaint to the US government after it emerged that Trump held a phone call with the President of Taiwan on Friday, in breach of decades of diplomatic protocol.
“I can tell you that the Chinese side has lodged solemn representations with the relevant party on the US side both in Beijing and Washington. China has got its message across to the world as a whole with regard to Taiwan-related issues. The US side, president-elect Trump's team included, is also fully aware of China's solemn attitude on the issue,” said the Chinese Foreign Ministry spokesperson, Lu Kang, in a press conference today.