China Expands Yuan Clearing Services Amid Push for Global Trade

The Shanghai Clearing House has expanded its yuan clearing services to include Singapore dollars (SGD), New Zealand dollars (NZD), and Thai baht (THB). This move is part of China's efforts to broaden direct yuan trading and strengthen Belt and Road FX services.

Beginning September 14, twelve banks joined the launch session, which cleared 996 million yuan ($148 million) in spot deals. To encourage participation, fees on these three new pairs will be waived until the end of 2028.

This expansion is seen as a positive step for RMB internationalization by Bosco Wu, a strategist at the Bank of East Asia. He noted that central clearing reduces counterparty risk and lowers capital and credit line costs of trading, making it more attractive for counterparties.