Clients of the firm can now trade the offshore Chinese Renminbi against the US Dollar.
Saxo Capital Markets introduced the new USDCNH currency cross on its trading platforms. This allows clients of Saxo Capital Markets 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 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 Capital Markets' clients, including those of white label clients. However, the cross will not be available to clients of Saxo Capital Markets HK Limited.
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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