Renminbi trading in London to be cleared by early next week
AUTHORITIES from the UK and China will sign an agreement next Monday to allow investors in London to clear and settle the Asian giant’s currency.
The deal paves the way for London to establish itself as the prime location for renminbi trading in Europe.
Both countries’ central banks – the Bank of England and the People’s Bank of China – will sign the agreement on setting up a clearing bank.
Chancellor George Osborne has been pushing for the deal, despite the efforts of rival financial centres such as a Luxembourg, which also wants to become a focal point for renminbi trading.
Luxembourg officials have said their government is in talks with Chinese authorities over mutual recognition of investment funds based in the two countries.
Frankfurt and Zurich have also been touted as possible locations.
“Connecting Britain to the fastest growing parts of the world is central to our economic plan,” Osborne said yesterday.
“Other western countries will follow, but London now has the critical mass of infrastructure, helping to put Britain at the front of the global race.”