More and more corporate deals are expected to take place between London and Chinese firms, which will in turn, enable financial professionals to trade and hedge on the Chinese renminbi.
It was announced in 2014 that London was the first venue for trading renminbi in Europe and the deal between the Chicago Mercantile Exchange (CME) and the China Construction Bank (CCB) is the first of many partnerships, the Telegraph reports.
Head of international at CME, William Knottenbelt, believes that being able to transact during London hours is significant. “The ability to transact during London hours is of paramount importance to those institutions who value flexibility in managing their positions in markets where prices can move sharply in short periods of time,” Knottenbelt said.
After being deemed as “freely usable”, the International Monetary Fund will decide whether or not to give the currency special drawing rights – the yuan would then become a global reserve currency.
The Telegraph also said that the CCB became the first clearing bank for renminbi in Europe and Bank of China’s branches in Frankfurt and Paris were approved shortly after. 6 billion yuan transactions were made per day last year through CCB UK and according to the City of London, London markets hosted $61.5 billion worth of renminbi trading per day in 2014.
The success of centrist Emmanuel Macron in the first round dispelled fears of a victory for the far-left candidate Jean-Luc Mélenchon.
However, the region’s mature markets such as China and India are set to benefit most, real estate group CBRE reports.
The latest annual survey by US group Treasury Strategies reports that their priorities are familiar, but treasury is adopting a fresh approach to tackling them.
In its latest report, the International Monetary Fund notes that many governments have eased up on austerity measures.