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China Targets Counterweight in Gold Trade with Yuan Fix
by A. Ananthalakshmi and Jan Harvey
Reuters.com
SINGAPORE/LONDON, July 1 (Reuters) – A decade after China kicked off a series of gold market reforms, plans to establish a yuan price fix mark one of Beijing’s biggest step so far to capitalise on the country’s position as the world’s top producer and a leading consumer.
While no immediate threat to the gold pricing dominance of London and New York, the benchmark could ultimately give Asia more power over bullion trade, particularly if the yuan becomes fully convertible, industry sources say.
The yuan fix is due to launch by the end of 2015 via the Shanghai Gold Exchange (SGE), which last year allowed foreign players to trade gold using offshore yuan.
“Across the commodity markets as a whole, we’re seeing some very significant initiatives by the Chinese authorities,” said Nic Brown, head of commodities research at Natixis.
Continue Reading at Reuters.com…
Source: http://financialsurvivalnetwork.com/2015/07/china-targets-counterweight-in-gold-trade-with-yuan-fix/?utm_source=rss&utm_medium=rss&utm_campaign=china-targets-counterweight-in-gold-trade-with-yuan-fix
