MAY 24, 2018
As China continues to stockpile gold in its governmental reserve accounts, they add credibility to their efforts to sway the world’s de facto trade currency status from the US dollar to the yuan.
Having already successfully launched the petro-yuan, allowing them to trade oil futures in the native currency, branching out to the LME would be an affirmative step on the global trade stage in normalizing the use of the yuan by international investors in their own investment activity.
A metals futures contract denominated in Chinese currency may soon be launched at the London Metal Exchange (LME), according to the exchange chief executive, Matthew Chamberlain.
“At present, investors are trading our products in US dollars. We would definitely like to explore the possibility of launching products denominated in offshore renminbi,” Chamberlain said in an interview with the South China Morning Post.
The LME, which is owned by Hong Kong Exchanges and Clearing (HKEX), currently allows traders to use the Chinese currency as collateral. Last July, the HKEX stock market also launched yuan-denominated gold futures.
ORIGINAL SOURCE: Yuan the Conqueror: China to launch yuan-backed metals futures in London to challenge US dollar at RT on 5/24/18