The clearing house for the London Metal Exchange, known as LME Clear, announced yesterday that it will start accepting offshore renminbi as eligible cash collateral. This is a significant step forward in China’s efforts to move away from its reliance on foreign exchange reserves and toward more domestic financial markets.
The clearing house for the London Metal Exchange, known as LME Clear, announced yesterday that it will start accepting offshore renminbi as eligible cash collateral. The Bank of China's London branch has become the first Chinese settlement bank for LME Clear, after gaining approval for the initiative from the Bank of England.