UAE to Set Up Yuan Clearing Hub
- The popularity of the Chinese currency continues to grow with yet another clearing hub opening with one of the world's biggest oil producers.
China is accelerating its penetration into the Middle East with a new Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term agreement for the yuan in the troubled region. Xinhua, China’s official news agency, reported yesterday that the United Arab Emirates (UAE) has signed an agreement with China to set up a clearing 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 Chinese currency, also called the renminbi ("people's currency").
A local UAE media report quoting UAE’s central bank stated that the two countries signed the deal during Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed Al-Nahyan's official visit to China earlier this month.
No specific date was revealed regarding when the hub will be opened for trading, but the UAE and China also renewed a 35 billion yuan (5.42 billion USD) currency swap during the Crown Prince’s visit.
The clearing hub will be the second in the Middle East after the Gulf state Qatar set up the region’s first yuan clearing hub this April. The new clearing hub is expected to satisfy the growing needs of UAE-based firms and banks in their dealings with the Chinese currency.
UAE's Biggest Bilateral Partner
The RMB Qualified Foreign Institutional Investor program included the UAE, one of the world’s major oil suppliers. As part of this arrangement, the Gulf state was given a quota of 55 billion RMB (8.53 billion USD or 31.3 billion UAE dirham).
This latest pact between the countries follows China surpassing India as the biggest trade partner of the UAE, with bilateral trade reaching nearly $50 million in 2014. This year, government officials estimated that bilateral trade has surpassed $60 million.
Xinhua added that a staggering number of Chinese companies run branches in the UAE- more than 4,000. Among them are the four biggest Chinese lenders ICBC, China Construction Bank, Agricultural Bank of China and Bank of China. In addition, over 300,000 Chinese citizens reside in the UAE.
More About the Yuan
LME Clear Accepts Collateral Payments in Offshore Renminbi
Yuan Overtakes Dollar as Second Most Active Currency between China, Japan
Chinese Yuan Eying Membership in IMF’s Benchmark Currency Basket
China is accelerating its penetration into the Middle East with a new Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term agreement for the yuan in the troubled region. Xinhua, China’s official news agency, reported yesterday that the United Arab Emirates (UAE) has signed an agreement with China to set up a clearing 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 Chinese currency, also called the renminbi ("people's currency").
A local UAE media report quoting UAE’s central bank stated that the two countries signed the deal during Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed Al-Nahyan's official visit to China earlier this month.
No specific date was revealed regarding when the hub will be opened for trading, but the UAE and China also renewed a 35 billion yuan (5.42 billion USD) currency swap during the Crown Prince’s visit.
The clearing hub will be the second in the Middle East after the Gulf state Qatar set up the region’s first yuan clearing hub this April. The new clearing hub is expected to satisfy the growing needs of UAE-based firms and banks in their dealings with the Chinese currency.
UAE's Biggest Bilateral Partner
The RMB Qualified Foreign Institutional Investor program included the UAE, one of the world’s major oil suppliers. As part of this arrangement, the Gulf state was given a quota of 55 billion RMB (8.53 billion USD or 31.3 billion UAE dirham).
This latest pact between the countries follows China surpassing India as the biggest trade partner of the UAE, with bilateral trade reaching nearly $50 million in 2014. This year, government officials estimated that bilateral trade has surpassed $60 million.
Xinhua added that a staggering number of Chinese companies run branches in the UAE- more than 4,000. Among them are the four biggest Chinese lenders ICBC, China Construction Bank, Agricultural Bank of China and Bank of China. In addition, over 300,000 Chinese citizens reside in the UAE.
More About the Yuan
LME Clear Accepts Collateral Payments in Offshore Renminbi
Yuan Overtakes Dollar as Second Most Active Currency between China, Japan
Chinese Yuan Eying Membership in IMF’s Benchmark Currency Basket