The Chinese yuan is ever-closer to being considered a world reserve currency as at least 40 nations' central banks have bought the currency and a slew of other financial institutions are driving toward acquisitions, according to The South China Morning Post.
Thus far 23 central banks have stated they have purchased the monetary unit colloquially known as the "redback," according to Standard Chartered. At least 12 central banks also have bought the Asian nation's currency but they as of yet have not gone public with information about those purchases.
"The [yuan's] convertibility may be already there for central banks in a way that has got them comfortable to start investing in the currency," global head of central banks and sovereign wealth funds Jukka Pihlman with Standard Chartered in Singapore told the South China Morning Post on Monday.
Beijing has increasingly driven toward the purchase of the yuan in recent years and the publication noted that one factor that has helped the yuan's status advance is reverence that China demonstrates for central bankers and their staff members.
But concerns are still spreading about the Asian nation's economic slowdown, The Financial Times reports.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.