Core Viewpoint - The London Metal Exchange (LME) is increasing the interest rate for offshore Renminbi (CNH) used as collateral starting November 1, 2025, to encourage more market participants to utilize CNH as cash collateral [1][2] Group 1: Interest Rate Changes - LME Clear will raise the interest rate for CNH as collateral from CDIR-30 bps (T) to CDIR-0 bps (T-1) [1] - This change aims to enhance the attractiveness of using CNH in the collateral framework [1] Group 2: Importance of Renminbi - The Renminbi is recognized as one of the major world currencies by the International Monetary Fund (IMF) and is the first emerging market currency included in the IMF's Special Drawing Rights (SDR) basket [1] - The significance of the Renminbi in international markets is increasing, particularly with the growing number of Chinese enterprises trading on the LME [1] Group 3: Historical Context and Liquidity Management - Since July 2015, LME Clear members have been able to use CNH as qualified cash collateral to meet margin requirements [1] - In March 2017, LME Clear reduced the notice period for members to deposit or withdraw Renminbi to two working days, enhancing liquidity management efficiency [1] Group 4: Collaboration and Opportunities - LME Clear will continue to collaborate with its members to seize opportunities arising from the internationalization of the Renminbi and to promote interaction between Chinese market participants and those from other regions [2]