Chinese Yuan gets more breathing space
The Chinese central bank has announced they will allow the restricted Yuan to fluctuate intra-day to allow for better price discovery.
The Yuan trades at a specific range against the greenback. In a single trading day the maximum movement is 0.5% fromt he midpoint price set by the central bank.
China is among other emerging market nations whose currency has restrictions, the Indian Rupee and Brazilian Real all trade as NDF's.
The new measures by the central bank allow the Yuan to trade with a 1% daily range.
The Yuan is currently trading at 6.30 against the US dollar.
Since the 2008 global recession China has deliberately kept its currency low to boost exports. China has been criticised by leading economies including the Untied States of protectionist strategies to fuel its own economy.
China has been working hard to bring in currency reforms, Hong Kong is paving itself as the offshore financial Hub Hub A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method Read this Term for the Renminbi.
Forexmagnates team wrote a detailed report on margin FX in China, available in the current Q4 2011 quarterly report.
The Chinese central bank has announced they will allow the restricted Yuan to fluctuate intra-day to allow for better price discovery.
The Yuan trades at a specific range against the greenback. In a single trading day the maximum movement is 0.5% fromt he midpoint price set by the central bank.
China is among other emerging market nations whose currency has restrictions, the Indian Rupee and Brazilian Real all trade as NDF's.
The new measures by the central bank allow the Yuan to trade with a 1% daily range.
The Yuan is currently trading at 6.30 against the US dollar.
Since the 2008 global recession China has deliberately kept its currency low to boost exports. China has been criticised by leading economies including the Untied States of protectionist strategies to fuel its own economy.
China has been working hard to bring in currency reforms, Hong Kong is paving itself as the offshore financial Hub Hub A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method Read this Term for the Renminbi.
Forexmagnates team wrote a detailed report on margin FX in China, available in the current Q4 2011 quarterly report.