RMB Clearing Business Is Accelerating Global Layout

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< p > the people's Bank of China announced in July 4th that it authorized the Bank of communications [0.76% Capital Research Report] Seoul branch to act as the clearing bank of Seoul's RMB business.

In June, the central bank also announced that it had signed a memorandum of understanding with the Bank of France and the Central Bank of Luxemburg to establish RMB clearing arrangements, and confirmed that China Construction Bank [0.24% Capital Research Report was a clearing bank for the RMB business in London, and confirmed that the Bank of China was the clearing Bank of Frankfurt.

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< p > this series of arrangements means that RMB clearing business is accelerating the global layout, clearing network is beyond Hongkong, Macao, Taiwan, Singapore and Malaysia and other Asian regions, and Europe is expected to become the second largest offshore RMB market.

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< p > < strong > > a href= "http://www.91se91.com/news/index_s.asp" > RMB < /a > will eventually become a 24 hour liquidation global currency < /strong > /p >

< p > in recent years, Sino EU economic and trade investment has been increasing continuously, which is in line with the increasing demand for RMB settlement in the course of trade contacts.

Thus, in Europe, the pace of RMB internationalization has accelerated, and RMB settlement has accelerated in the global layout.

According to statistics, the total import and export volume of China and Europe reached 729 billion 970 million US dollars in 2013.

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Andreas Freitag, a senior researcher at the European Center for international political and economic studies, told reporters that the recent settlement of RMB clearing business in Europe was not only due to the rising status of RMB in the international payment currency, but also from the close economic and trade ties between China and Europe. P

The huge Chinese market has continuously attracted European enterprises and established RMB clearing bank to satisfy their desire to expand exports through RMB trade settlement.

"With the increasingly close commercial ties between China and Europe, Europe will usher in the large-scale development of offshore RMB business. It is believed that Europe will become the second largest offshore RMB market after Hongkong."

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The report issued by Deutsche Bank also believes that Europe is likely to become the second largest offshore RMB market. P

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Hongkong became the first offshore RMB trading center in 2009. P has accumulated rich experience in operation and has a sound financial infrastructure. At present, Hongkong accounts for 53% of the global offshore RMB market share.

However, because of the relationship between time zone and customer base, the offshore RMB center of Hongkong and other Asian countries can not effectively serve European customers.

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< p > Freitag said: "the offshore RMB market is an open competitive market, and the establishment of RMB clearing bank in Europe can well complement each other in Hongkong and Singapore in terms of jet lag and better serve European customers."

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"P > ICBC European staff also told our reporter:" before the RMB offshore business in Europe still needs to complete settlement through the RMB clearing bank of Hongkong and Singapore.

With the establishment of RMB clearing centers in Europe, the RMB clearing bank network is extending to the main offshore market in the world. As long as the liquidity needed for RMB clearing is ensured, the RMB will eventually become a 24 hour global currency, rather than just confined to mainland China, Hongkong, Southeast Asian countries and other regions.

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< p > < strong > will further enhance the recognition rate of RMB in the international community < /strong > /p >

"P" is the reason why European countries are competing to become the offshore trading center of the renminbi. The staff of ICBC Europe said that although the European economy is showing signs of recovery, it is still not out of the crisis.

In order to make better use of the spillover effect of China's economic growth and share the fruits of China's economic growth, some European countries and financial centers are eager to sign a cooperation agreement with the Central Bank of China to arrange RMB clearing arrangements, seize market opportunities, make their country become the European currency clearing center, provide RMB financial products and services, including RMB settlement and financing, enhance the service and radiation capabilities of their financial centers, and continuously promote employment and national economic growth.

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< p > "it is clear that letting clearing banks settle in their own countries will increase the efficiency and liquidity of RMB pactions.

At the same time, it can also attract more Chinese companies interested in investing in Europe.

Freitag said.

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"P >" RMB internationalization is a natural development process, and has been accepted by many countries in Southeast Asia.

The people's Bank of China in the layout of RMB clearing centers in London, Paris, Luxemburg and Frankfurt will further enhance the recognition rate of RMB internationally and promote the cross border use of RMB in international trade settlement and investment, which will have a more positive impact on China's RMB internationalization strategy.

As more and more international financial centers recognize Renminbi and continuously develop and innovate RMB products and services, the renminbi will exert greater influence in other parts of the world.

Freitag said.

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< p > in addition, because China is in a process of structural adjustment and steady growth, and the speed of economic development is still ahead of the major economies in the world, with the corresponding policies and measures, the RMB internationalization strategy will be promoted at a faster pace.

As the renminbi is widely accepted internationally, trade and investment activities related to Renminbi will certainly lead to economic activities in China and its countries and regions, which in turn will promote China's economic development.

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< p > < strong > it is a matter of time before an enterprise uses RMB to trade settlement. < /strong > /p >

< p > for the Construction Bank's clearing bank for RMB business in London, the British media pointed out that the move would enhance the internationalization process of RMB, make up for the shortage of the infrastructure of RMB pactions in the UK, and further consolidate London's position as a global financial and foreign exchange trading center.

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Zhou Xiaoming, the counsellor of the Chinese Embassy in the UK, said in an interview with our reporter that with the efforts of both sides, London has become a prototype of the offshore RMB center.

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< p > it is understood that Germany attaches great importance to the establishment of the RMB clearing center and considers it an important opportunity to take the express train in China.

When it comes to the issue of RMB internationalization, Shuker Hei Hitt, director of the Department of international economic strategy of the German Federal Ministry of finance, said recently that China's rapid economic development, further developing the financial sector and promoting the internationalization of RMB are their natural needs.

The European side is aware that the internationalization of RMB has a mutually beneficial role for EU China relations and is ready to push ahead with this process.

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Joachim Nagel, director of Deutsche federal bank, said that the internationalization process of a currency is usually divided into three steps. P

First, it becomes a trading currency, followed by an investment currency and finally a reserve currency.

At present, the internationalization process of RMB is between the first and second steps.

He said that this is a natural development process, and it is not expected to encounter too many obstacles.

According to a recent survey of 158 large German enterprises by German Commerzbank, 73% thought they would use RMB to trade settlement sooner or later, and 40% of the enterprises pointed out that Frankfurt becoming an offshore center of RMB would help to overcome some obstacles in current trade.

Public, BOSCH and SIEMENS have already used Renminbi offshore centers to issue bonds.

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Christina Ott, an expert on Asia Pacific issues in the German Federal Foreign Trade and investment agency, told reporters that Frankfurt is the first RMB clearing center in the euro area and will play an active role in Promoting Sino German trade. P

At present, there are more than 5000 German enterprises in China, and China has set up more than 1000 enterprises in Germany.

In the first quarter of this year, the Sino German economic and trade volume exceeded 36 billion euros, an increase of 4.8% over the same period last year.

But only 8% of bilateral trade is settled in renminbi through Hongkong.

After setting up a RMB clearing center in Frankfurt, bilateral trade settlement will be more streamlined, reducing the cost of settlement and reducing the impact of exchange rate fluctuations.

This will also help more Chinese enterprises to raise funds in the "a href=" http://www.91se91.com/news/index_p.asp "Europe" /a "capital market.

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