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ICBC Becomes Settlement Bank of Dubai Gold & Commodities Exchange
 

ICBC has signed an agency settlement agreement with Dubai Commodities Clearing Corporation (DCCC), officially becoming a settlement bank of Dubai Gold & Commodities Exchange (DGCX).

The head of ICBC (Middle East) said that after the signing of the agreement, ICBC will provide DCCC with settlement support for RMB products such as offshore RMB futures contract. ICBC has so far completed all systematic and technical preparations to support settlement of all currencies such as USD, RMB, AED and INR.

DCCC is a wholly-owned subsidiary of DGCX responsible for settlement. Currently its major banking partners are foreign banks. The signing with ICBC will not only diversify clearing channels between DGCX and members but also support promotion of ICBC’s RMB products and improvement of RMB liquidity.

In recent years, financial cooperation between China and United Arab Emirates has continued to step up. On September 26, 2016, direct RMB trading against AED was launched in the interbank foreign exchange market. On October 28, 2016, Shanghai Gold Exchange signed the Agreement on Authorized Use of Shanghai Gold Benchmark Price with DGCX, becoming the first overseas exchange authorized to take Shanghai gold benchmark price as cash settlement price under the gold futures contract in which prices are calculated in offshore RMB. The cooperation between ICBC and DGCX will better facilitate Sino-UAE bilateral economy, trade and investment.


(2016-12-20)
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