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Regulation

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  • Despite the progress in the usage of renminbi globally, multi-currency settlement provider CLS has yet to include the RMB on its platform. This, according to sources familiar with the review, is largely due to China's shortcoming in its payment infrastructure as well as broader concerns about China’s legal framework.
  • China’s move to measure the renminbi against a trade weighted basket of currencies rather than just the US dollar is a sign from that central bank that it will be more tolerate of a weakening RMB, say FX traders.
  • Regulatory proposals in the European securitization market are hoped to encourage confidence in the ABS product, but change needs to happen fast if the market is to retain its dwindling investor base, said market participants last week.
  • The People’s Bank of China (PBoC) and the Central Bank of United Arab Emirates have signed a memorandum of co-operation to set up renminbi clearing arrangement in UAE. At the same time the region is set to get its first RQFII quota.
  • The announcement of a new RMB exchange index has rekindled debate about whether the People's Bank of China (PBoC) needs to review the way it communicates with global markets. The answer is a resounding yes.
  • The China Foreign Exchange Trade System (CFETS) published the details of an exchange rate index for the renminbi for the first time on December 11. The index is based on a basket of 13 currencies, with the dollar, euro and yen taking the lion's share.