China Expands Yuan's Reach With Central Clearing

China has expanded its onshore central clearing system to include more foreign currencies in a bid to promote direct trading with the yuan and reduce reliance on the dollar.

The Shanghai Clearing House began providing central counterparty (CCP) services for spot trades of the Singapore dollar, New Zealand dollar, and Thai baht on September 14. Twelve banks participated in the first session, clearing 996 million yuan ($148 million) of transactions.

This move is part of China's efforts to increase the international use of its currency and reduce its dependence on the US dollar.