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Settlements in yuan and currency control

  • 5 min read

Settlements in yuan for metal on the GCX exchange go on a par with the dollar and the rouble: an order lives in one currency, and it is carried over into the trade.

The fee, however, is always charged in USD — the amount in CNY or RUB is converted at the official Bank of Russia fixing on the date of the trade, and the rate is recorded together with the trade.

Currencies on the GCX exchange: settlements in yuan for metal

Trades run in three currencies: USD, CNY and RUB. The choice is made by the seller when publishing the order; the buyer sees the order already with the currency and cannot rewrite it to suit itself.

The market rules are simple and strict:

  • an order lives in one market: one commodity, one currency, one unit of quantity;
  • the delivery points of the parties must overlap;
  • the Incoterms basis and the mode of transport are set before matching and are carried over into the trade without renegotiation;
  • the shipment week is an ISO week and must match exactly.

Changing the currency after matching is impossible: that would be renegotiation. If you want to settle in yuan and the counterparty is ready only in dollars, the trade simply will not happen — currencies in different markets do not meet.

The currency also affects the circle of counterparties. A seller ready to settle in yuan usually already works with Asian suppliers and banks, while a trade in roubles is more often of interest to companies with turnover inside the country. The dollar market is the widest, so a counter order in it is the easiest to find.

The yuan is convenient for those who buy metal or components in Asia and keep settlements in CNY. The dollar remains the base currency of the platform, while the rouble suits trades inside the country, where both parties settle in the national currency.

Rate and fixing

The rate is needed in exactly one place: to convert the fee into USD. The fee is 0.50% of the trade amount from each side, not less than $0 and not more than $500. For a trade in yuan or roubles the amount is taken at the official Bank of Russia fixing on the date of the trade.

Trade currency The fee is calculated from How the amount in USD is obtained
USD the trade amount without conversion
CNY the trade amount at the Bank of Russia fixing on the date of the trade
RUB the trade amount at the Bank of Russia fixing on the date of the trade

The rate is not forecast and is not chosen by the parties: it is the official fixing for a specific date. It is recorded together with the trade, so the fee calculation can be checked after closing too. Arguing about the rate after the fact is pointless — the data is fixed at the moment of the trade.

Currency control

Currency control is the bank's work on a foreign trade contract: checking documents, registering the contract, monitoring the receipt of proceeds or the counter delivery. The procedure depends on the jurisdiction of the parties, the servicing bank and the parameters of the contract, so it is clarified with the bank before the trade.

The exchange does not interfere in these relations. It does not store bank details, does not make settlements for the goods and does not provide escrow. The parties disclose details and make settlements to each other during performance of the trade, outside the platform. The exchange matches binding orders and fixes the trade, while the money for the metal goes directly between the buyer and the seller.

A practical consequence: choose the currency for your banking scheme, not the other way round. If settlements in yuan are consistent with your contract and bank, the trade will go through without extra queries. If not, questions will arise after shipment, when it is too late to change anything.

What is fixed in a trade

At the moment of matching, the commodity, the volume, the currency, the Incoterms basis, the mode of transport, the shipment week and the rate for converting the fee are fixed. After that the parties work by this data.

The deadlines are also set: 24 hours to confirm the trade, 5 days to exchange and accept documents. The first count runs from the moment of matching, not from confirmation. Missing a deadline costs the deposit — the party whose move it was loses its deposit, the other gets its own back in full.

A balance is needed to submit an order. It is $10, with top-ups from $10 to $10 000 via RollyPay. An unmatched order does not hold money, and the fee is charged only after the trade.

Frequently asked questions

In which currencies can you settle for metal on the exchange

In USD, CNY and RUB. The currency is chosen in the order and carried over into the trade. An order lives in one market: one commodity, one currency, one unit of quantity.

At what rate is the fee calculated in yuan

At the official Bank of Russia fixing on the date of the trade. The rate is recorded together with the trade, so the calculation can be checked later.

Do you forecast the yuan rate

No. The exchange does not give forecasts and does not influence the rate. Only the official fixing on the date of the trade is used to convert the fee.

Can the currency be changed after matching

No. The currency is fixed in the order before matching and enters the trade unchanged. To trade in another currency, a new order in the corresponding market is needed.

How much is the fee for a trade in yuan

0.50% of the trade amount from each side, not less than $0 and not more than $500. The fee amount is charged in USD at the fixing on the date of the trade.

How to top up the balance for an order

Via RollyPay, from $10 to $10 000. The minimum balance to submit an order is $10. An unmatched order does not hold funds.

Who is responsible for currency control

The parties to the trade and their banks. The exchange does not store details, does not make settlements for the goods and does not deal with currency control. Clarify the requirements with your own bank.

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