Renminbi (RMB) Yuan Clearing Bank To Open In London

Now London launches the Yuan, the Petro Dollar will take a hit.

This is a big deal and with Yuan convertibility in the Shanghai free trade zone in July, the momentum will accelerate.

Heffx Live Trading News
By Paul Ebeling
2 June 2014

A RMB Yuan (CNY) clearing bank will be officially appointed in the United Kingdom (UK) in June, said Mark Boleat, policy chairman for the City of London Corp, in an interview at the weekend.

“There will be a clearing bank in London. In due course, there will be an announcement,” Mr. Boleat said. The news will be an endorsement for London’s efforts to become an offshore yuan center. Other European financial centers in the race to become a Yuan center include Frankfurt, Paris, Switzerland and Luxembourg.

An official clearing bank facilitates efficient clearing of offshore Renminbi transactions, achieved through the appointed bank’s direct cooperation with the People’s Bank of China (PBOC) , the country’s central bank.

Mr. Boleat said having a clearing bank in London will act as a signal for London’s growing Yuan activities, although activities are already cleared through many commercial banks’ own channels.

For example, in December Standard Chartered (LO:STAN) teamed up with Agricultural Bank of China to provide their own Yuan clearing platform, making use of the 2 banks’ expertise and client base in the UK and China.

Mr. Boleat’s news follows a memorandum of understanding China and the UK signed in April to work together on a clearing bank for London.

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