Fixed Income, Currency and Commodities: Chinese yuan
What's the difference between the Chinese yuan (CNY) and the Chinese renminbi (RMB)?
Renminbi is the official name for the currency, and yuan is the main unit of currency, i.e. the name used by Chinese citizens. This is similar to the sterling versus pound distinction in the United Kingdom.Can I trade in yuan?
Yes, provided your Chinese counterparty is registered as a pilot enterprise with the People's Bank of China.
Can I trade same day value in yuan?
No, because the settlement cut-off time for the Chinese currency is before our markets open in the morning. Spot deals and value tomorrow deals can be concluded.
When is the best time of the day to deal yuan?
Hong Kong trades between 08:00 and 18:00 their time and they are six hours ahead of South Africa. There is liquidity in the market before 12:00 South African time and it is best to trade before then.
Why would a Chinese supplier want to invoice in yuan?
Currently Chinese counterparties are exposed to movements in the dollar/yuan exchange rate. By invoicing in their home currency, they remove the currency market risk associated with the transaction.
How would a South African importer mitigate their currency risk?
RMB will be offering Forward Exchange Contracts (FECs) that will allow an importer to hedge rand weakness against the yuan.
How can I open a Customer Foreign Currency account?
Your customer dealer can arrange an account opening pack for you. Documents must be furnished before 13:00, no later than one day prior to settlement date for the account to be tradeable on settlement date.
Who can I contact for more information on the yuan?
Your FICC customer dealing in your region can assist you
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