The Business Times
business-time-50
SUBSCRIBERS

Renminbi becoming anchor currency in commodity trading, investments: market watchers

google-preferred-sourceAdd BT as a preferred source
Uma Devi

Uma Devi

Published Wed, Apr 12, 2023 · 05:50 AM
    • Maybank’s head of forex research Saktiandi Supaat says commodities such as gold and copper could be next in line to be traded in renminbi.
    • Maybank’s head of forex research Saktiandi Supaat says commodities such as gold and copper could be next in line to be traded in renminbi. PHOTO: BLOOMBERG

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    CHINA’S renminbi is gaining ground as a settlement currency for select commodities, a trend which some market watchers say puts it on track to becoming an anchor currency in commodities trading on the back of growing demand as well as geopolitical tensions.

    Cross-border payments in yuan rose between 2017 and 2022. These settlements made up 18 per cent of China’s total value of goods traded in 2022, said a report by the People’s Bank of China in February.

    In March, Chinese national oil company China National Offshore Oil Corp and France completed China’s first yuan-settled trade in liquefied natural gas (LNG) through the Shanghai Petroleum and Natural Gas Exchange.

    Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

    CurrenciesYuanCommoditiesChina

    Copyright SPH Media. All rights reserved.

    Reuse this contentFeedback

    TRENDING NOW

    Air India has been one of the foreign carriers most affected by the outbreak of hostilities in the Middle East.

    Air India asks Tata, Singapore Airlines for funds after US$2.4 billion loss

    Chinese Foreign Minister Wang Yi stopped short of explicitly naming the US or Israel as aggressors, a telling omission from a country that otherwise speaks with little diplomatic timidity.

    Beijing’s calculated silence on the Iran war 

    US President Donald Trump (left) with Chinese President Xi Jinping at a bilateral meeting on the sidelines of the Apec summit in Busan last October.

    China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result

    Eu Yan Sang group chairman Richard Eu has been with the company since 1989 and has seen plenty of change over the years, such as how employees view their jobs.

    Richard Eu on how core values, customers keep Singapore’s TCM chain Eu Yan Sang relevant

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More