http://www.forexconspiracyreport.com/direct-trading-of-singapore-china-currency-pair/
Direct Trading of Singapore China Currency Pair
China continues on its way to internationalize its currency. The latest step is direct trading of the Singapore China currency pair. As reported in Channel News Asia Singapore and China are to start direct currency trading.
China will allow direct trading between its currency and the Singapore dollar from Tuesday (Oct 28), making it easier for companies here to do business with their Chinese counterparts.
The Sing dollar will be added to the China Foreign Exchange Trade System (CFETS) platform, which currently offers transactions between the yuan and 10 foreign currencies. The announcement came on Monday (Oct 27), after an agreement at the Joint Council for Bilateral Cooperation (JCBC) in Suzhou, co-chaired by Deputy Prime Minister Teo Chee Hean and Chinese Vice Premier Zhang Gaoli.
Previously, companies that wanted to convert a large amount of Sing dollars to renminbi (RMB) or vice versa had to do so via an intermediate currency such as the US dollar.
“This will lower foreign exchange transaction costs and encourage greater use of the two currencies in cross-border trade and investments,” the Monetary Authority of Singapore (MAS) said in a news release on Monday.
As the article notes, a goal of doing this is to facilitate direct conversion of Singapore dollars for Chinese Renminbi and vice versa. The direct trading of the Singapore China currency pair is just the latest step in China’s goal of internationalizing its currency.
Yuan Euro Trading and More
According to a recent article in Bloomberg, direct trading with the Eurowas the sixth major currency with which the Renminbi trades directly.
China will start direct trading between the yuan and the euro tomorrow as the world’s second-largest economy seeks to spur global use of its currency.
The move will lower transaction costs and so make yuan and euros more attractive to conduct bilateral trade and investment, the People’s Bank of China said today in a statement on its website. HSBC Holdings Plc said separately it has received regulatory approval to be one of the first market makers when trading begins in China’s domestic market.
The euro will become the sixth major currency to be exchangeable directly for yuan in Shanghai, joining the U.S., Australian and New Zealand dollars, the British pound and the Japanese yen. The yuan ranked seventh for global payments in August and more than one-third of the world’s financial institutions have used it for transfers to China and Hong Kong, the Society for Worldwide International Financial Telecommunications said last week.
Now that the Singapore dollar has been added the list of currencies that trade directly against that of China are the following:
USD United States Dollar
EUR Euro
GBP British Pound
YEN Japanese Yen
AUD Australian Dollar
NZD New Zealand Dollar
3. The latest step is direct trading of the
Singapore China currency pair.
4. Before We Continue…
Click the links below to get your
FREE training materials.
Free Weekly Investing Webinars
Don’t miss these free training events!
http://www.profitableinvestingtips.com/free-webinar
Forex Conspiracy Report
Read every word of this report!
http://www.forexconspiracyreport.com
Get 12 Free Japanese CandlestickVideos
Includes training for all 12 major candlestick signals.
http://www.candlestickforums.com
5. As reported in Channel News
Asia Singapore and China are to
start direct currency trading.
6. China will allow direct trading between its
currency and the Singapore dollar from
Tuesday (Oct 28), making it easier for
companies here to do business with their
Chinese counterparts.
7. The Sing dollar will be added to the China
Foreign ExchangeTrade System (CFETS)
platform, which currently offers
transactions between the yuan and 10
foreign currencies.
8. The announcement came on Monday (Oct
27), after an agreement at the Joint
Council for Bilateral Cooperation (JCBC) in
Suzhou, co-chaired by Deputy Prime
MinisterTeo Chee Hean and ChineseVice
Premier Zhang Gaoli.
9. Previously, companies that wanted to
convert a large amount of Sing dollars to
renminbi (RMB) or vice versa had to do so
via an intermediate currency such as the
US dollar.
10. “This will lower foreign exchange
transaction costs and encourage greater
use of the two currencies in cross-border
trade and investments,” the Monetary
Authority of Singapore (MAS) said in a
news release on Monday.
11. As the article notes, a goal of doing this
is to facilitate direct conversion of
Singapore dollars for Chinese Renminbi
and vice versa.
12. The direct trading of the Singapore
China currency pair is just the latest step
in China’s goal of internationalizing its
currency.
14. According to a recent article
in Bloomberg, direct trading with the
Eurowas the sixth major currency with
which the Renminbi trades directly.
15. China will start direct trading between the
yuan and the euro tomorrow as the
world’s second-largest economy seeks to
spur global use of its currency.
16. The move will lower transaction costs and
so make yuan and euros more attractive
to conduct bilateral trade and investment,
the People’s Bank of China said today in a
statement on its website.
17. HSBC Holdings Plc said separately it has
received regulatory approval to be one of
the first market makers when trading
begins in China’s domestic market.
18. The euro will become the sixth major
currency to be exchangeable directly for
yuan in Shanghai, joining the U.S.,
Australian and New Zealand dollars, the
British pound and the Japanese yen.
19. The yuan ranked seventh for global
payments in August and more than one-
third of the world’s financial institutions
have used it for transfers to China and
Hong Kong, the Society forWorldwide
International Financial
Telecommunications said last week.
20. Now that the Singapore dollar has been
added the list of currencies that trade
directly against that of China are the
following:
21. USD United States Dollar
EUR Euro
GBP British Pound
YEN JapaneseYen
AUD Australian Dollar
NZD New Zealand Dollar
SGD Singapore Dollar
KRW South KoreanWon
23. A major issue in dealing with China is the
lack of transparency of their economy
and their continuing efforts to control
their currency.
24. The strength of the Chinese currency
may be one casualty of direct trading
with a broader set of choices.
25. According to an article in Forbes we
should not bet that Chinese currency
strength will not last despite recent
promising economic data.
26. The iShares FTSE China (FXI) exchange
traded fund got a hand from decent
Chinese economic data on Monday, in a
week that promises to be full of ups and
downs.
27. FXI rose 1.6% within the first hour of
trade. But this week’s data dump out of
Beijing will likely be volatile.
28. Over the past year, economic data out of
China has been a story of one step
forward, one step back.
29. The issue for China as it attempts to
internationalize its currency is that it will
need to loosen up its control of currency,
economy and social structures in order
to truly function across all markets as an
international currency.That though
probably scares the folks in Beijing.
