U.K. to Co-Operate With China on RMB Clearing and Settlement

The Bank of England has signed a memorandum of understanding (MoU) with the People’s Bank of China (PBoC) and the bank regarding renminbi (RMB) clearing and settlement arrangements.
By Janet Du Chenne(59204)
The Bank of England has signed a memorandum of understanding (MoU) with the People’s Bank of China (PBoC) and the bank regarding renminbi (RMB) clearing and settlement arrangements.

This agreement, signed on March 31 2014, is expected to facilitate the use of renminbi by banks and other firms in international transactions, supporting global trade and investment.

Through this MoU, the bank and the PBoC commit to cooperate over relevant supervisory arrangements and share relevant information as necessary. A clearing bank will be designated in London in due course.

Jon Cunliffe, deputy governor for Financial Stability, says: “The move towards greater internationalisation of the RMB by the Chinese authorities is one of great importance that the Bank strongly supports. London is at the heart of the global financial system and is a major centre for RMB business. It is therefore entirely appropriate that London should play a role in the further internationalisation of the RMB through the opening of a RMB clearing bank in London. The Memorandum of Understanding signed by the Bank of England and the People’s Bank of China today represents a key milestone on that journey.”

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