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

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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

    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.

    CurrenciesYuanCommoditiesChina

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