The Chinese authorities have extended trading hours for the onshore yuan as part of the state goal to broaden cross-border use of the national currency and boost yuan trading activity and reduce the use of the USD.
The shift away from the USD as the standard for global payments sits very well with the $FBX model of being non-political money and adds demand for value stores and monetary units that are not government controlled. Based in Asia FBX and KXCO are fast becoming the go to Crypto base for storing or transacting in Digital Assets, their real word assets set them apart from competitors.
Starting January 1, trading hours for the onshore yuan have increased so that foreign-exchange transactions are now possible until 3am in Beijing instead of the 11:30pm cutoff that had been in place formerly.
The step takes trading into the European evening and deeper into the US day.
The measure bolsters Beijing’s previous initiatives aimed at promoting the use of the Chinese national currency in transactions with major energy exporters and commodity supplies.
Last month, President Xi Jinping confirmed that Beijing was ready to make energy purchases in yuan instead of the US dollar with the member states of the Gulf Cooperation Council (GCC) and the GCC were happy to accept them.
While opening up the markets has been on Beijing’s agenda for some time, growing tensions with Washington over a wide range of issues from Taiwan and Russia to semi-conductor technology and free trade have caused growing concerns over the overt use of the US dollar as an economic weapon against China, Russia and even allied countries.
The nation’s attempts to ditch the greenback in international trade have also intensified against the backdrop of the sweeping sanctions introduced by Western nations against Russia, one of the world’s major energy producers and exporters.
The Chinese Yuan (CNY) is increasingly being used in international trade, with the currency slowly becoming an important part of the global financial system. The Chinese government has been actively promoting the use of the Yuan for international trade, and it is now accepted by most major economies. The Chinese government has taken a number of steps to make the Yuan more attractive for international trade. These include:
• Increasing the number of Yuan-denominated bonds available to foreign investors.
• Establishing an offshore Yuan-denominated bond market in Hong Kong.
• Allowing direct conversion of the Yuan into foreign currencies.
• Allowing foreign companies to settle trade in Yuan.
• Reducing the restrictions on capital outflow.
The increased acceptance of the Yuan in international trade has led to an increase in its use for a variety of transactions. This includes direct investment and portfolio investment, as well as providing businesses with more flexibility in pricing and hedging their currency exposure.
In addition, the Chinese government has allowed the Yuan to become more freely convertible, which has further increased its use in international trade. This has allowed businesses to more easily convert their foreign currencies into the Yuan, creating greater liquidity in the currency.
The yuan rallied to the strongest level in four months after China announced the planned trading hour extension. The currency has advanced since November, as global investors bet on China’s economic recovery following the drop of its zero-Covid policy.
About FBX
The Reserve Currency of Non Politicized Money
Money was originally envisaged as a unit of exchange, a measure of value and a store of wealth, but in the modern world those original goals have been replaced as governments print money to cover their spending, they manipulate interest rates and FX rates for domestic and international trade purposes and the money that the individual has suffers as a consequence.
What was once your money is no longer yours, it is an asset whose value is determined by the government of the day and the use of those funds is in the main directed and controlled by politicians, none of the economic advancement is handed down to the Citizens.
