Key facts
- CLS is developing a payment-versus-payment (PvP) settlement service for the offshore Chinese renminbi (CNH).
- The service will facilitate settlements in Hong Kong.
- The launch is driven by increasing demand to reduce foreign exchange settlement risk.
CLS, a provider of settlement services, is preparing to introduce a payment-versus-payment (PvP) settlement service for the offshore Chinese renminbi (CNH). This development, understood by Risk.net, is a response to the growing need to mitigate foreign exchange settlement risk. The CNH's expanding role in global financial markets and cross-border transactions has fueled this demand. The planned service will involve settling the offshore renminbi in Hong Kong through a dedicated PvP session.