Clearstream has announced their will work with the Luxembourg branch of ICBC, China’s state-owned bank, to facilitate offshore cross-border liquidity for the Renminbi (RMB), China’s domestic currency.
Clearstream has been seeking a partner for the global offshore RMB market throughout the year as it looks to meet a large push into Asia as led by its parent company, Deutsche Boerse Group.
“Increasing liquidity of offshore RMB is a critical component for improving market confidence and growing the global offshore RMB, an objective supported by Clearstream’s RMB strategy,” Clearstream says in an online statement.
“Together, Clearstream in its role as a Securities Settlement System and ICBC in their role as RMB clearing bank in Luxembourg hope to build further liquidity and advance the offshore RMB market.”
Earlier this month, ICBC Luxembourg launched a clearing bank for RMB payments, creating a direct link between Luxembourg and China.
According to statistics from SWIFT, RMB payments in Luxembourg increased by 517” between September 2013 and 2014, in which the Chinese currency is now the seventh most used currency worldwide.
Other markets such as London, Frankfurt, Luxembourg and Paris are also in stiff competition with each other to win the status as ‘the global liquidity hub’ for the offshore RMB market.
Clearstream Finds RMB Clearing Partner In ICBC Luxembourg
Clearstream has announced their will work with the Luxembourg branch of ICBC, China’s state-owned bank, to facilitate offshore cross-border liquidity for the Renminbi (RMB), China’s domestic currency.
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