London Metal Exchange set to accept yuan as collateral

The London Metal Exchange plans to accept China’s yuan as collateral for its commodities traders in a symbolic milestone for China’s currency, The Wall Street Journal reported, citing Trevor Spanner, chief executive of the exchange’s clearing house business. “In the commodities area, it makes absolute sense to start providing renminbi-denominated services,” Spanner said. “The renminbi is on its way to becoming one of the world’s most widely used currencies.” The yuan is now the fifth most used currency for international payments, according to data from payment services provider the Society for Worldwide Interbank Financial Telecommunication.