Saxo Bank just announced that it will now allow offshore renminbi trading against the USD. Saxo thus is joining the likes of HSBC and BMO who already allow this type of trading. As we already mentioned few times, it may be a sign of China opening up for retail Forex trading in the near future. FX Options and swaps can already be traded onshore.
Saxo Bank, the specialist in online trading and investment, today announced that the new USDCNH currency cross is now available on its trading platforms. Clients of Saxo Bank will now be able to trade the offshore Chinese renminbi against the US Dollar.
Streaming prices on ticket sizes up to USD 3 million will be available during regular FX trading hours from 8am Mondays Sydney time to 5pm Fridays New York time. Larger trade sizes will be available on a Request for Quote (RFQ) basis. The Margin Requirement for the USDCNH is 8% and the minimum trade size is USD 5,000 notional.
The USDCNH will be available to all Saxo Bank’s clients, including those of white label clients, but will not be available to clients of Saxo Capital Markets HK.
Claus Nielsen, Head of Trading, Saxo Bank comments:
“Over the past few years, the Chinese government has allowed the renminbi to appreciate against the US Dollar, and has gradually deregulated the currency’s trading. CNH offers an important option to take and manage renminbi risk and exposure to real investments and positive yield. The development of the offshore renminbi CNH is integral to China’s broader strategic plans to internationalise and turn the renminbi into a viable reserve currency.
“London, whose 37 per cent share of the global forex market is twice the one of its nearest rival New York, has just been officially approved by China as an offshore centre for trading renminbi. We expect USDCNH to become an interesting trading currency for our clients in the future.”
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