China’s Renminbi Challenges US Dollar Hegemony? Chinese Currency Trade in Major Financial Centers London, Frankfurt, Toronto, Vancouver and San Francisco Battle to Become Western Centers for Chinese Currency Trade Germany Bloomberg reports today: Germany’s Bundesbank and the People’s Bank of China agreed to cooperate in the clearing and settling of payments in renminbi, paving the way for Frankfurt to corner a share of the offshore market. *** The central banks signed a memorandum of understanding in Berlin today, when Chinese President Xi Jinping met German Chancellor Angela Merkel, the Frankfurt-based Bundesbank said in an e-mailed statement. Germany’s financial capital prevailed over Paris and Luxembourg in a euro-area race to win trade in renminbi, which overtook the euro to become the second-most used currency in global trade finance in October, according to the Society for Worldwide Interbank Financial Telecommunication. The BBC pointed out Wednesday: The Bank of England has agreed a deal with the People’s Bank of China to make London a hub for Chinese currency dealing. The memorandum of understanding, to be signed on Monday, sets out settlement and clearing arrangements for the renminbi, or yuan, in London. The signing is expected to be followed by the appointment of a London clearing bank for yuan. 62% of yuan payments outside of China already take place in London. *** #InstaFrame
Posted on: Mon, 31 Mar 2014 02:17:44 +0000
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