China Expands Yuan Clearing to Three More Currencies

China continues to expand its central clearing system, allowing for spot yuan transactions against three additional foreign currencies. The Shanghai Clearing House began offering central counterparty clearing services for spot transactions involving the Singapore dollar, New Zealand dollar, and Thai baht on September 14.

The expansion marks another step in Beijing's efforts to promote wider international use of the Chinese currency. Trading in the three newly added currencies totaled about 996 million yuan ($148.49 million) on the first day, with twelve banks participating in the initial session.

The Shanghai Clearing House said the expansion is intended to support the development of Belt and Road currencies in China's interbank foreign exchange market while broadening the reach of its foreign-exchange clearing services.