China is launching trading in forward contracts and swaps between the yuan and three more currencies, including the Russian ruble, from December 29, the China Foreign Exchange Trade System managed by the People’s Bank of China reported on Friday.
Starting from this date, China is also launching trading in contracts with the Malaysian ringgit and the New Zealand dollar.
With the launch of trading in the ruble, the ringgit and the New Zealand dollar, yuan swaps on the interbank foreign exchange market will be available for 11 currencies.
“This will provide companies with better hedging tools, and at the same time, make currency trading more efficient,” Bloomberg news agency quoted HSBC’s strategist in Hong Kong Ju Wang as saying.
“China won’t stop yuan globalization” despite volatility in emerging market currencies, the strategist said.