RMB And Sterling Start A Positive Paction To Facilitate Convenience And Reduce Exchange Costs.

"P", authorized by the Chinese people's "a href=" http://sjfzxm.com/news/index_q.asp "/a", 18, the China Foreign Exchange Trading Center announced that since 19, the inter-bank foreign exchange market has improved the way of RMB trading with the pound, and developed the direct trading of RMB against the pound.

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< p > the people's Bank of China said that developing Renminbi direct trading with the pound would help to form a direct exchange rate between RMB and sterling, reduce the exchange cost of the main body of the economy, promote the use of RMB and sterling in bilateral trade and investment, help strengthen financial cooperation between the two countries, and support the continuous development of economic and financial relations between China and Britain.

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< p > according to the announcement issued by the China foreign exchange trading center on 18 th, the RMB exchange rate in the inter-bank foreign exchange market is directly trading with the market maker system, and the direct market maker bears the corresponding obligations. It continuously provides the two way quotations for the direct purchase and sale of RMB against the pound, providing liquidity for the market.

At the same time, the central parity of the RMB against the sterling exchange rate was then calculated according to the exchange rate between the central parity of RMB against the US dollar and the exchange rate between the US dollar and the pound on the basis of the quotation made by the direct trading market maker, that is, before the opening of the interbank foreign exchange market, the China foreign exchange trading center made an inquiry to the market maker of the direct exchange between the RMB and the pound in the inter-bank foreign exchange market, and the average price of the direct market maker would be quoted on average, so that the central parity of RMB to sterling exchange rate could be obtained on that day.

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P, global director of HSBC Global Banking and capital markets, foreign exchange, commodities and enterprise sales, said Van de wing, with the continued popularity of the renminbi in the world, establishing an efficient market mechanism is very important for the internationalization of RMB. This increase in the direct quotation of sterling and the establishment of market maker system are part of the improvement of the market mechanism.

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< p > Zhao Qingming, chief macroeconomic researcher of Beijing Financial Derivatives Research Institute, told the economic reference daily that developing Renminbi direct trading with sterling can reduce reliance on the US dollar and further promote the internationalization of RMB.

However, he also admitted that even if the renminbi and Sterling realized a direct paction, the market maker would directly quote the dollar, but the market maker's quotation was not blind, but would still refer to the exchange rate between us dollar and sterling, that is to say, in the short term, the exchange rate of RMB against the pound could not be completely divorced from the US dollar anchor.

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< p > > a href= "http://cailiao.sjfzxm.com/Matertial/show/default.aspx" > Zhao Qingming < /a > also indicates that the internationalization of RMB should not be an isolated process, but must be closely linked with the realization of trade and investment between China and Britain. Only when the amount of RMB used in trade and investment is increasing and RMB is being accepted by other countries more and more, can internationalization be truly realized.

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< p > data show that Sino British cooperation in trade and finance has become more and more secure in recent years.

In terms of paction volume, London has become the only offshore renminbi market in the world after Hongkong. In 2013, the volume of RMB trading in London increased by 50%.

In June 2013, the people's Bank of China and the Bank of England signed a Sino British bilateral currency swap agreement with a scale of 200 billion yuan /200 billion, which aims to provide liquidity support for further development of the London RMB market.

At the Sino British financial dialogue held in October 2013, the Chinese side agreed to give the British 80 billion yuan R Q FII quota.

In January this year, the first R Q FII ET F fund in the European trading market was officially listed on the London Stock Exchange.

On the 18 day earlier, according to the relevant contents of the memorandum of the people's Bank of China and the England bank, the a href= "http://cailiao.sjfzxm.com/Matertial/show/default.aspx" > the people's Bank of China (/a) decided to authorize China Construction Bank (London) limited to assume the London RMB business clearing bank.

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