Tinkoff Bank plans to launch overnight foreign exchange operations in yuan. Legal entities will be able to place Chinese currency at interest daily through the exchange infrastructure. Similar products are now only available on the over-the-counter market. This was reported to RB.RU by the bank’s press service.
The transactions will be structured using clearing participation certificates (CCPs), which are issued by the National Clearing Center (NCC) based on the assets contributed by the clearing participant to the property pool.
Customers make a repo transaction using yuan from their account and receive GCC from NCC. The clearinghouse then places money in the hands of professional participants and receives securities as collateral. The next day, the counterparties carry out reverse operations: legal entities receive yuan, taking into account the accrued interest, returning the GCC to the NCC, and professional participants settle accounts with the NCC and recover the placed securities.
Kommersant experts believe that the exchange rate margin for overnight yuan exchange rates is low and companies will be wary of the product given the high currency risks and low interest rates.
Author:
Karina Pardaeva
Source: RB
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