S&P 500
7,401.00
+0.91%
Dow Jones
49,665.70
+0.19%
Nasdaq 100
29,241.00
+2.43%
Russell 2000
2,860.88
+0.82%
FTSE 100
10,263.70
+0.48%
Nikkei 225
63,767.70
+2.68%

Banking, finance, and taxes

Chinese Currency Going Global? (CME, ICE)

Photo of Paul Ausick
By Paul Ausick Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Invalid Image
At a conference in Singapore, the CEO of the London Metals Exchange (LME), the world hub for metals trading, said that LME is working on a 2-year project to create its own clearing house and that the group is considering adopting the Chinese yuan as a means of settlement once the project is launched. LME currently accepts US dollars, euros, Japanese yen, and British pounds to settle contracts.

The LME is currently seeking bids to be acquired, with the CME Group Inc. (NASDAQ: CME) and IntercontinentalExchange Inc. (NYSE: ICE) among the potential buyers. Firm bids for LME are due next week.

Adding the yuan would recognize the fact that China is the world’s largest consumer of the metals contracted at LME — copper, aluminum, zinc, lead, nickel, and tin. For China the adoption of the currency would be a major step in the country’s goal of internationalizing the yuan. Last month the government widened the fixed trading band on the yuan, but among the policy changes remaining is removing the restriction on foreign ownership of China’s currency.

According to a report at MarketWatch, market participants have supported the proposed move, although LME’s CEO said, “It’s like asking people if they’d like world peace or a pony for Christmas. Obviously [the answer is] yes.”

Paul Ausick

Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

Continue Reading

Paul Ausick |

Iran Trades Oil for Yuan, Rupees, and Junk

One way that Iran has found to combat the tightening international sanctions on its crude oil sales is to accept…

Stablecoins Better Suited for Yuan’s International Appeal, Not CBDCs: Circle CEO
247patrick |

Stablecoins Better Suited for Yuan’s International Appeal, Not CBDCs: Circle CEO

Jeremy Allaire, CEO of USDC issuer Circle, thinks that a stablecoin pegged to the Chinese yuan could help internationalize the…

Douglas A. McIntyre |

China Trade Surplus Surges

Members of Congress who are trying to force the Obama Administration to label China as a “currency manipulator”  now have…

China Arrests Crime Group Responsible for Laundering $5.6B in Crypto Funds
247patrick |

China Arrests Crime Group Responsible for Laundering $5.6B in Crypto Funds

Chinese authorities reportedly arrested a major criminal organization responsible for laundering $5.6 billion worth of crypto money.

Douglas A. McIntyre |

Currency Wars: The Referee Fired, The Sport Begins

The IMF was dismissed as the possible arbitrator in the growing currency dispute among the biggest countries. The US immediately…

Ripple’s New CBDC Platform Aims to Simplify Issuing Digital Currencies
247patrick |

Ripple’s New CBDC Platform Aims to Simplify Issuing Digital Currencies

Ripple has launched its Central Bank Digital Currency (CBDC) Platform, allowing central banks and financial institutions to issue digital currencies.

China Wants Its Own Stablecoin — Should Tether and Circle Internet Worry?
Rich Duprey |

China Wants Its Own Stablecoin — Should Tether and Circle Internet Worry?

The $250 billion stablecoin market, dominated by Tether’s USDT ($158 billion) and Circle Internet’s (NYSE:CRCL | CRCL Price Prediction) USDC…

HM Treasury Seeking Head of CBDC as UK Moves Closer to the Digital Pound
247patrick |

HM Treasury Seeking Head of CBDC as UK Moves Closer to the Digital Pound

The U.K. government’s economic and finance ministry seeking to hire a head of central bank digital currency.

Stablecoin Marketcap Expected to Grow 2,140% in 5 Years as PayPal Enters
247patrick |

Stablecoin Marketcap Expected to Grow 2,140% in 5 Years as PayPal Enters

Researchers at Bernstein expect the stablecoin market cap to grow 2,140% over the coming five years.

Top Gaining Stocks

Akamai
AKAM • Vol: 21,556,944
Micron Technology
MU • Vol: 65,135,624
Intel
INTC • Vol: 227,504,426
Monster Beverage
MNST • Vol: 15,284,847
Dell Technologies
DELL • Vol: 12,167,525

Top Losing Stocks

Mettler Toledo International
MTD • Vol: 539,266
Motorola Solutions
MSI • Vol: 3,101,643
Expedia
EXPE • Vol: 4,189,786
Coterra Energy
CTRA • Vol: 73,319,495
Fidelity National Information Services
FIS • Vol: 11,468,820