China Opens FX Market Ahead of SDR Decision

The first batch of foreign central banks, sovereign wealth funds and international financial institutions have been registered to enter China’s interbank foreign exchange market, the country’s central bank said on Wednesday.

This registration comes ahead of a highly-anticipated announcement by the International Monetary Fund on Monday that China’s yuan may join its foreign exchange basket.
That would place the yuan on par with the U.S. dollar , Japanese yen, British pound and euro in the exclusive Special Drawing Rights (SDR) basket.

The seven institutions that have been registered include three central banks: Hong Kong Monetary Authority, Reserve Bank of Australia, and National Bank of Hungary, the People’s Bank of China said in a statement on its website.

The International Bank for Reconstruction and Development, International Development Association, Trust Funds of World Bank Group, and Government of Singapore Investment Corp, are the other four institutions to be admitted to the domestic market.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza