Date
23 September 2017
The designation of a renminbi clearing bank for Frankfurt is expected to boost trade and investment between China and Germany. Photo: AFP
The designation of a renminbi clearing bank for Frankfurt is expected to boost trade and investment between China and Germany. Photo: AFP

Bank of China named yuan clearing bank for Frankfurt

The People’s Bank of China has named Bank of China Ltd. (03988.HK) the clearing bank for renminbi transactions in Frankfurt, the PBoC said in a statement on its website.

The announcement came just a day after China Construction Bank Corp. (00939.HK) was designated renminbi clearing bank in London.

The PBoC and the Deutsche Bundesbank signed a cooperation memorandum on yuan clearing in March to facilitate the use of the Chinese currency in Germany. The Chinese central bank said the designation of a clearing bank for Frankfurt would benefit bilateral trade and investment.

Separately, Canada has initiated talks with Chinese authorities on the establishment of the first offshore renminbi transaction center in North America, Bloomberg reported.

There has to be enough trading volume to warrant the establishment of such a center, Canadian Finance Minister Joe Oliver said in response to an open letter by major opposition party which made the suggestion.

Business leaders in Toronto also called on the federal government to pursue talks with Beijing on the yuan trading hub.

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