Lack of renminbi derivatives may foil currency's SDR entry
Panellists at a Sifma conference and corporate executives surveyed by Allen & Overy cite scant liquidity as a key concern for renminbi's progress
Inadequate liquidity in Chinese renminbi derivatives is putting participants off hedging the currency and this is one of the biggest obstacles to the country joining the International Monetary Fund's special drawing rights (SDR) basket, according to panellists at a Securities Industry and Financial Markets Association (Sifma) conference in New York.
Concerns over liquidity were also highlighted in a survey by law firm Allen & Overy. Two-thirds of the 150 respondents – all senior executives at
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