Loading ...China’s yuan gold benchmark to launch with 18 members -source
Top Chinese banks and gold miners, along with the world’s biggest jewellery retailer, will be among 18 members taking part in Beijing’s new yuan-denominated gold benchmark, a source familiar with the matter said.
Two foreign banks will also join the benchmark-setting process, when it launches on April 19, marking China’s biggest step to become a price-setter for gold.
As the world’s top producer, importer and consumer of gold, China has baulked at having to depend on a dollar price in international transactions, and believes its market weight should entitle it to set the price of gold.
A yuan gold fix is not expected to pose an immediate threat to the gold pricing dominance of London and New York, but it could ultimately give Asia more power, particularly if the Chinese currency becomes fully convertible.
Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China , China Construction Bank and Bank of Communications are among the ten Chinese banks that will participate, said the source, who declined to be identified because he was not authorised to speak to the media.
cont. http://www.reuters.com/article/china-gold-fix-idUSL3N17G1Z5