Cheaper funding, stronger EM ties are boosting yuan’s appeal in trade finance

Quick Summary:

The yuan’s funding costs for trade finance are about 3 percentage points lower than loans priced in the US currency, Standard Chartered says.

For example, the three-month Shanghai interbank offered rate stood at about 1.85 per cent last week, according to China Foreign Exchange Trade System, while similar-tenor US dollar London interbank offered rate cost 5.2 per cent.

The yuan’s appeal as a funding currency is not at risk, even if the Federal Reserve is poised to start cutting its target rate as early as next week.

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Article Details

Author / Journalist: Enoch Yiu

Category: Business

Markets: Hong KongChinaIndonesiaMalaysiaSingapore

Topics: Rate Currency Yuan Funding Trade According Finance Settle Hong Costs Markets

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-09-09 @ 07:30:13 (4 hours ago)

News Timezone: GMT +8:00

News Source URL: scmp.com

Language: English

Article Length: 216 words

Reading Time: 2 minutes read

Sentences: 6 lines

Sentence Length: 36 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © SCMP

News ID: 22415332

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