The offshore yuan is on track to become the second-most traded currency against
the US dollar in the foreign-exchange options market, overtaking the yen,
according to LCH. The euro-dollar pair is expected to remain the most traded
when the BIS releases its 2028 triennial survey. LCH’s ForexClear head said
banks trading euro-dollar and dollar-yen options would welcome clearing yuan
options. The yuan accounted for 8.5% of global FX transactions in the latest BIS
survey, up from 7% in 2022, compared with 89% for the US dollar, 28.9% for the
euro, 16.8% for the yen and 10.2% for the pound. LCH said it plans to expand
clearing services for offshore yuan derivatives and add Chinese government bonds
denominated in offshore yuan as collateral by early Q3 2026, with potential
settlement through CMU OmniClear in Hong Kong next year.
