Yuan-Euro about to begin trading
(China) - China's foreign exchange market will start trading the euro against the domestic yuan on April 1, according to reports from the market's Regulator.
Designed to cope with an expected climb in euro settlement demands from Chinese importers and exporters following the country's joining the WTO, the move will add to the Shanghai-based national forex market, the China Foreign Exchange Trade System, existing three-currency, US dollars, Japanese yen and Hong Kong dollars trading.
Expected euro/yuan volume will account for about five percent of the market's total turnover when trade starts, but is likely to rise as long term demand from European banks climbs. Transaction costs are expected to fall also, as banks will no longer need to convert euros into dollars before buying yuan on the local forex market.
Expected euro/yuan volume will account for about five percent of the market's total turnover when trade starts, but is likely to rise as long term demand from European banks climbs. Transaction costs are expected to fall also, as banks will no longer need to convert euros into dollars before buying yuan on the local forex market.
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