DUBAI, Sept 29 Standard Chartered said
on Thursday it had started direct trading between the Chinese
yuan, Saudi Arabia's riyal and the UAE's dirham, making it one
of the first market-makers to trade those currency pairs in
China's interbank market.
Last week, the operator of China's foreign exchange trading
platform said it had agreed to establish direct trading for the
two pairs, starting on Sept. 26. Previously, trade occurred
indirectly through third currencies such as the U.S.
Trading goods between the Gulf and China has grown rapidly
in the last few years, although it has dropped off recently
because of the weaker oil price. China is the UAE's
second-largest trading partner and is Saudi Arabia's largest
Financial trading links are also growing.
Sources told Reuters last month that Agricultural Bank of
China would be allowed to clear yuan transactions in
Dubai for the United Arab Emirates, making the bank the first
Chinese lender in the UAE to do so.
(Reporting by Tom Arnold; Editing by Andrew Torchia and Louise