A bad Omen for the US Dollar – China launches yuan-denominated gold benchmark in Shanghai

 

Did you notice how the Western media conveniently muted or barely addressed this major event that has every potential of dethroning the dollar and prying lose the control of gold and silver markets from New York & London?

This was because they are trying to minimize the approaching doom of the dollar.

China launches yuan-denominated gold benchmark in Shanghai

China launched its yuan-denominated gold benchmark on Tuesday in Shanghai as it seeks to secure more sway in the pricing of the precious metal.

The Shanghai Gold Benchmark Price (code: SHAU), is the quote for trading of 1kg, 99.99 percent purity bullion, denominated in the Chinese yuan and derived from multiple rounds of trading.

The benchmark was set at 257.97 yuan per gram on Tuesday, the Shanghai Gold Exchange (SGE) said in a statement.

The benchmark also lays the foundation for shifting bullion trading in Shanghai from mostly spot to derivatives to increase the appeal of yuan-denominated bullion trading as financial instruments for both domestic and global investors.

SGE Chairman Jiao Jinpu said the launch of the benchmark offers the opportunity to develop bullion trading in China’s financial markets and encourage more participation by global investors.

Standard Chartered Bank (China) Ltd. and ANZ Bank (China) Ltd. are among 12 fixing members for the benchmark trading. The other ten members are domestic banks.

The trading margin is set at 6 percent and transaction fees are exempted until June 30 this year.

Source: Xinhua 

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