Europe'S Offshore RMB Center, Who Will Raise The Top?

Xi Jinping P recently visited Europe and promoted the construction of offshore RMB center system.

In March 28th, the people's Bank of China and the Federal Bank of Germany signed a memorandum of understanding on the establishment of RMB clearing arrangements in Frankfurt.

On the same day, in the joint statement on establishing a comprehensive strategic partnership between China and Germany, it was mentioned that "a RMB clearing bank will be selected".

Insiders said that the memorandum signed by both sides is an important part of building offshore renminbi centers in Frankfurt.

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< p > besides Frankfurt, European financial centers such as London and Paris are also interested in developing RMB settlement business or setting up offshore RMB center.

In March 31st, the people's Bank of China and the Bank of England signed a memorandum of understanding on establishing RMB clearing arrangements in London.

After that, the clearing bank of the RMB business in London will be confirmed.

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Who will be the top leader in the construction of the RMB offshore trading center in Europe, Frankfurt and London, P? How many offshore centers do the renminbi require? < /p >

< p > < strong > complementarity and < a href= > http://www.91se91.com/news/index_c.asp > non competitive relationship < /a > /strong > /p >

Below P, the Central Bank of China signed a memorandum with London and Frankfurt only, but in addition to London and Frankfurt, European financial cities such as Paris, Zurich and Luxemburg are promoting the construction of offshore RMB centers.

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< p > however, reporters from these cities show that they are not like China's domestic media called "fierce competition."

In fact, the offshore financial centers of RMB are more mutually reinforcing rather than zero sum games.

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< p > first, from the total point of view, RMB offshore finance increases with offshore center construction, which can be seen from historical experience.

The historical data from the offshore RMB center in Hongkong and Singapore can be seen.

By analogy, it is not that Hongkong has 3 or two meals. After the construction of the offshore RMB center in Singapore, Hongkong will distribute 3 to two of its 1 two to Singapore, but the total amount has changed from 3 two to 7 two. Singapore has created 2 2, and Hongkong has also increased from the quota to the GDP.

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< p > secondly, different cities develop differently and their functions are different.

Heinrich Siegmann, director of Asian Affairs at the Swiss bankers association, said there are 3-4 big offshore renminbi trading centers in Europe, so London, Frankfurt and Zurich have the opportunity.

Sun Lijian, vice president of the school of economics, Fudan University [micro-blog] explained to reporters in an image: "between the major offshore centers, it is not your eating me, I eat your competitive relationship, but a complementary relationship, the RMB business is grafted on their own characteristics of the business, you go, I go."

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< p > Yang Changyong, an international finance researcher at the national development and Reform Commission, World Economic Research Institute, pointed out his respective advantages: "London focuses on the offshore market of various currencies, and the pricing of important financial products (such as interbank benchmark interest rates). Frankfurt is the center of commercial banks. Switzerland's advantage is in the offshore market. The bank for International Settlements is equivalent to the global central bank clearing agency. Its headquarters is in Switzerland."

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"P >" there are significant differences among the major centers. Frankfurt takes more consideration of the demand for RMB payment and settlement by European enterprises and the public. It is the regional center for European economic integration.

London imports Renminbi into foreign exchange products, London as a global foreign exchange trading center. The global bank exchange rate is in London and the global interbank market is controlled by London.

Luxemburg and Switzerland are mainly commercial banks.

Sun Lijian said.

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< p > "clearing memorandum" is a significant progress in the process of RMB internationalization.

After the national strategy of currency swap, the most important part of the RMB is the establishment of a clearing network system, which is the most important part of international currency.

At present, the most important thing for the renminbi is that there is no establishment of an international settlement network. These financial centers have huge international networks, and they help us build a network system in the world to facilitate RMB facilitation, and the most important goal in the process of currency internationalization is to use convenience.

Sun Lijian said in an interview with reporters.

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What is the next step of RMB internationalization after the signing of the memorandum of understanding? P, Minister of economic, energy, pportation and urban planning of Frankfurt, Germany, said AI vzir, "the memorandum of understanding has laid the foundation for Frankfurt to become an offshore center of RMB. The next important steps include the determination of RMB clearing banks, local banks, enterprises and other participating parties to jointly improve the usage and liquidity of the renminbi, and enrich the RMB products, and strengthen the participation of German financial institutions in clearing the RMB in the medium term."

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"P >" there may be only one clearing bank, for example, only foreign-funded financial institutions in London and Frankfurt, and possibly a foreign bank and a Chinese financial institution.

Moreover, the quantity will be relatively small at the beginning, but with the development of RMB business, there will be more than one or two clearing houses.

Zhu Ning, President of Shanghai Senior Finance College, said in an interview with reporters.

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< p > < strong > flowering is beneficial to China < /strong > /p >

"P," Luxemburg, director of the financial development department, said in an interview with reporters: "developing several a href=" http://www.91se91.com/news/index_c.asp "> offshore center" /a "is good for China.

Even former vice mayor of London suggested that China should develop several offshore centers besides London.

He said in an interview with reporters, "China should set up several offshore RMB centers.

China can do this as long as RMB pactions are still very small relative to the US dollar and the euro. Last year, the US dollar accounted for almost half of the foreign exchange pactions, and the RMB was not even 5%. "

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< p > the managing director of Mizuho Securities also believes that "more blooming" is beneficial to China. He told reporters that "the formation of competition pattern is conducive to the development of RMB offshore center in the next 3 years, showing a multi pattern. The Central Bank of China can take a more open strategy to allow countries to compete and promote the development of offshore RMB market."

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During the visit of President Xi Jinping to France, France received a quota of 80 billion yuan RQFII (< a href= "http://www.91se91.com/news/index_c.asp" > RMB > /a > qualified foreign institutional investors). The two sides also agreed to continue discussions on the establishment of RMB clearing and settlement arrangements in Paris. "P"

France is the second European country to get the RQFII quota after the United Kingdom, and it has the same amount as the United Kingdom.

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Besides, P also found that Luxemburg is also an important springboard for many Chinese financial institutions to enter Europe, far more than London and Frankfurt.

According to Luxemburg's Ministry of finance data, Luxemburg is currently ranked first among all RMB business processing centers in Europe, and Luxemburg is also the largest settlement center for Renminbi securities in Europe and the leading place for Renminbi denominated bond issuance.

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