Friday 30/December/2022 – 07:37 PM
China seeks to internationalize its currency, as it announced today, Friday, its intention to extend the trading hours of its currency in local transactions, as the government moves forward with plans to internationalize the currency.
And the People’s Bank of China set the yuan trading period during local trading from 9:30 am until 3 am local time the next day instead of 11:30 pm, as of January 3.
Opening up the China market
This step would open up China’s markets further, at a time when the yuan is rising amid signs that the country may abandon its strict “zero Covid” policy.
The onshore yuan rose during the last two months of 2022, approaching its strongest level since September.
China’s central bank last extended trading hours for the currency in 2016.
He pledged to extend trading time in May after the International Monetary Fund raised the weight of the yuan in the basket of SDR currencies, an international reserve asset that can be converted into five currencies.
The yuan was included in the SDR for the first time in 2016, after years of China’s efforts to promote its use on the global stage.
Regulators led by the People’s Bank of China told some banks in June to prepare to extend the yuan’s onshore trading hours, and said trading would continue until 3am the next day.
The central bank kept the “official closing” time unchanged at 4:30 p.m. The China forex trading system uses the closing price as an important reference for pricing the yuan’s fixing the next day.