How the war in Iran is already affecting UK farmers and food production 
Morgan Stanley: Fed Rate Cuts Still on Track Despite Oil-Driven Inflation 
What does China’s host bid mean for the High Seas Treaty? 
U.S. Strikes on Iran Draw War Crimes Warnings from International Law Scholars 
Makemation: a Nollywood movie that shows AI in action in Africa 
RBC Capital: European Medtech Firms Show Minimal Middle East and Energy Risk Exposure 
Private Credit Under Pressure: Is a Slow-Motion Crisis Unfolding? 
Strait of Hormuz Disruption Sparks Global Oil Supply Fears 
London Metal Exchange, the world's oldest and most significant metals exchange, is now ready to accept the offshore version of the Chinese currency as collateral for trades at its clearing house.
This move points at two things:
- China's growing importance in global commodity market and,
- Yuan's growing importance in trade and margin settlement.
The move from LME is undoubtedly an important milestone for Yuan, however it is not entirely unexpected.
The LME was bought by Hong Kong Exchanges and Clearing in 2012. It has seen growing numbers of Chinese entities becoming members of the exchange. Moreover Hong Kong is totally under Chinese influence.
Not only Yuan, but London has also much to gain from the deal as it is competing with Singapore to become largest trading and settlement hub for offshore Chinese currency.
The move is also a nice break for Chinese government, who are looking to internationalize Yuan.
So, is IMF next in accepting Yuan?
- IMF is scheduled to review (done once in every 5 years) its SDR basket and main question policy makers will be facing whether or not to add Yuan to the currency basket.
IMF is unlikely to add Yuan this year, as Chinese government likes to control the markets (as evident from recent stock market intervention) and as of now Yuan seems heavily managed against dollar.
