PetroYuan Futures Open — Over 10 Billion Notional Trades In First Hour
- PetroYuan Futures Open — Over 10 Billion Notional Trades In First Hour
by Tyler Durden, https://www.zerohedge.com/
After all the preparation, all the expectation, cheerleading and doomsaying, China’s Yuan-denominated crude oil futures contract began trading tonight and appears to be off a good start with well over 10 billion yuan notional traded within the first hour. So far it has tracked WTI futures well, trading at around a $2 premium to WTI (when translated from yuan to USD)…
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Additionally, well over 23,000 contracts have traded within the first hour for a notional trading volume of over 10 billion yuan – more than $1.5 billion notional… signaling significant demand.
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The interesting point isn’t so much that contracts will be written in other currencies. It’s that the dollar is now going to be facing additional competition. What will that mean for the central bank, interest rates, and global diplomacy? I can’t wait to find out!