Standard Chartered and ABC Agree to Clear RMB in U.K.

Standard Chartered and Agricultural Bank of China (ABC) have signed a Memorandum of Understanding (MOU) to provide Renminbi (RMB) clearing services in the U.K., renewing the two banks' international cooperation.
By Janet Du Chenne(59204)
Standard Chartered and Agricultural Bank of China (ABC) have signed a memorandum of understanding (MoU) to provide Renminbi (RMB) clearing services in the U.K., renewing the two banks’ international cooperation.

Three years ago, the two banks signed an MoU to leverage the strengths of one another and increase ABC’s presence outside of China. Now, ABC will be able to combine its RMB liquidity with Standard Chartered’s clearing capabilities in the U.K. and enhance London’s position as an offshore RMB and foreign exchange hub.

ABC and Standard Chartered will act as local RMB clearers, provide comprehensive trade, investment and financing services to market players in London, and they will also support Chinese companies operating in the U.K. with a package of cross-border financial solutions.

The MoU also allows for greater awareness and the development of more RMB related products and services in areas such as trade finance, global cash management, asset management, and bond settlement through improved efficiency in the London time zone.

“The strategic partnership with ABC is not only a win-win for both parties, but also an opportunity for us to collaborate and offer our respective clients with opportunities to leverage relevant expertise for growth. Today’s MOU renewal offers both banks with unique opportunities to strengthen our value proposition and grow from strength to strength,” says Peter Sands, group CEO of Standard Chartered. “London’s position as a leading international financial centre is enhanced by the ability to offer onshore clearing services that allow ‘on-demand’ access to settle RMB denominated services within the London time zone; the opportunity to boost RMB liquidity in London could be used to fund large investment projects and support the development of other financial activities.”

“ABC has the most extensive distribution network and abundant RMB funds and will inject sufficient RMB liquidity into the London market”, says Zhang Yun, president of ABC. “By integrating their respective strengths in network and funding, together, ABC and Standard Chartered will act as local RMB clearers, provide comprehensive trade, investment and financing services to market players in London, and support Chinese companies operating in U.K. with a package of cross-border financial solutions. The signing of this extended strategic cooperation agreement is another major move to foster a stronger partnership in which we will jointly build the London offshore RMB center and promote the cross-border use of RMB. Our aim is to further explore cooperation possibilities and achieve a win-win situation for ABC, Standard Chartered and our clients.”

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