The London Metal Exchange confirms that it is planning to launch a yuan denominated metal future. LME CEO said in an interview with SCMP “At present, investors are trading our products in US dollars. We would definitely like to explore the possibilities of launching products denominated in offshore renminbi”.
The LME is owned by Hong Kong Exchanges and Clearing (HKEX). Traders on the HKEX are already allowed to use Chinese currency as collateral and this exchange has a yuan gold future contract. So this move seems to be a sensible extension for the LME. It may also provide some credibility to the LME.
A student of history would know that a reserve currency has a finite life. The US dollar is rapidly approaching its usefulness and the current financial moves by other countries indicate that they moving to a more stable asset.