Europe Will Add Two RMB Clearing Banks

P, > a href= "http://sjfzxm.com/news/index_s.asp" > RMB cross border < /a > has made new progress in Europe. London and Frankfurt each have a bank authorized to become a clearing bank for RMB business.

< /p >

In March 28th and 31st P, the PBOC signed a memorandum of understanding with the Deutsche federal bank and the Bank of England to establish RMB clearing arrangements.

According to the memorandum, we will confirm the clearing bank of RMB business in Frankfurt and London.

< /p >

The central bank said that the establishment of RMB clearing arrangements in Frankfurt and London will help enterprises and financial institutions to use RMB for cross-border pactions and further promote trade, investment liberalization and facilitation.

< /p >

< p > a person close to the regulatory authorities told Caixin reporters that the current cross-border infrastructure of RMB is not so convenient compared with international currencies such as the US dollar and the euro.

Therefore, the RMB settlement arrangement is mainly from the perspective of facilitating cross border liquidation. It is convenient for the market players to choose renminbi to make valuation and settlement, which is an arrangement of infrastructure and has the nature of "making up a missed lesson".

< /p >

< p > the website of Deutsche Bundesbank introduced that the RMB Initiative Group, established in October 2013, discussed three options for RMB clearing in Frankfurt: Agency mode, clearing bank mode and clearing center mode.

< /p >

< p > group discussion held that < a href= "http://sjfzxm.com/news/index_s.asp > > clearing center < /a > mode is the most effective. However, in order to be more controllable in the initial stage of development and for consideration of investment and operation costs, the group decided to adopt a" two step "plan, namely establishing a clearing bank first and then expanding the clearing bank into a clearing center.

< /p >

< p > "the people's Bank of China supports the two step path, and will soon select a clearing bank in Frankfurt."

Deutsche Bundesbank introduced the column "RMB clearing in Frankfurt". Because of the availability of RMB liquidity, the bank must be a branch of Chinese banks in Germany.

< /p >

At present, RMB clearing banks in Hongkong, Macao, Taiwan, Singapore, Laos, Kampuchea and Malaysia are all branches of Chinese banks in P.

< /p >

< p > RMB clearing bank can be divided into two categories: one is the cooperation memorandum signed by the Central Bank of the two sides and the clearing bank selected by the Central Bank of China, such as Hongkong, Macao, Taiwan and Singapore, as well as the RMB clearing bank for Frankfurt and London to be determined, and the other one is the clearing bank which the foreign central bank chooses by itself, such as the RMB clearing bank of Laos, Kampuchea and Malaysia.

< /p >

P, who is close to the regulatory authorities, said that the liquidation business was not monopolized. It is not only the clearing bank chosen by the Central Bank of China that it can carry out its business. The main body of the market can carry out its business normally according to the current policy.

< /p >

The difference between the two p clearing banks is that the central bank signed a memorandum of cooperation and the clearing bank selected by the Central Bank of China, which will get some policy support from the Central Bank of China.

Those close to the regulatory authorities said that policy support included the purchase and sale of Renminbi under trade, the liquidating bank should provide liquidity support to the local market, and the clearing bank could enter the interbank foreign exchange market.

< /p >

< p > according to the memorandum of cooperation between China, Germany and China, the two sides will fully consult and cooperate with each other to do a good job in supervision and management, information exchange, continuous evaluation and policy improvement.

< /p >

In Europe, in addition to Germany and Britain, there are other countries who are interested in the "a href=" http://sjfzxm.com/news/index_s.asp "RMB" /a "clearing bank".

3 at the end of the month, the Sino French joint statement said that France had obtained the quota of 80 billion yuan of qualified foreign institutional investor (RQFII) granted by China, and both sides agreed to continue to discuss the establishment of RMB clearing and settlement arrangements in Paris.

< /p >

< p > since 2010, the scale of business has increased rapidly since the cross-border use of RMB has been promoted.

The central bank data show that in 2013, the total amount of RMB settlement business in cross-border trade was 4 trillion and 630 billion yuan, up 57% over the same period last year.

In terms of direct investment, the total settlement of RMB cross-border direct investment in 2013 amounted to 533 billion 740 million yuan.

< /p >