Central Banking

Hong Kong launches euro clearing system

Hong Kong launched its euro clearing system on Monday with the aim of eliminating Herstatt risk in foreign exchange settlements.

Source: Reuters

Hong Kong launched a new euro clearing system yesterday, allowing domestic and regional financial institutions an opportunity to settle euro transactions real-time in the Asian time zone.

Commissioned by the Hong Kong Monetary Authority, Hong Kong's central bank, with Standard Chartered Bank acting as settlement institution, the system has been embrace