China adds currencies to yuan clearing system

China has recently expanded its onshore central clearing system to include three additional foreign currencies: the Singapore dollar, New Zealand dollar, and Thai baht. This move is part of China's efforts to promote direct trading with the yuan and support foreign-exchange services linked to the Belt and Road Initiative. Shanghai Clearing House, which already provides central clearing for the yuan against the dollar, euro, pound, Australian dollar, and yen, launched spot trading services for these three currencies on September 14.

Twelve banks participated in the first session, clearing 996 million yuan ($148 million) of transactions. To encourage adoption, the clearing house will waive clearing fees for these three new currency pairs through the end of 2028.

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