Saxo Bank Launches Offshore Renminbi (CNH)

Saxo Bank, a specialist in online trading and investment, has made available a US dollar/offshore renminbi (USDCNH) currency cross on its trading platforms. The bank's clients will now be able to trade the CNH against the US dollar.

Streaming prices on ticket sizes up to US$3m will be available during regular foreign exchange (FX) trading hours from 8am Monday Sydney time to 5pm Friday New York time. Larger trade sizes will be available on a request for quote (RFQ) basis. The margin requirement for the USDCNH is 8% and the minimum trade size is US$5,000 notional.

The USDCNH will be available to all Saxo Bank's clients, including those of white label clients, but will not be available to clients of Saxo Capital Markets HK.

Claus Nielsen, head of trading, Saxo Bank, said: "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% share of the global FX 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," he added.

Posted in: Press Releases