TheCityUK welcomes the announcement that the Bank of England and the People’s Bank of China have agreed to sign a Memorandum of Understanding on renminbi (RMB) clearing and settlement in London on 31 March 2014, paving the way for the first RMB settlement bank in the UK.
Chairman Gerry Grimstone commented “The signing of this Memorandum marks a milestone in UK-China relations and will help cement London’s position as the western hub for RMB trading. This in turn will underpin ever greater flows of trade and investment between the UK and the world’s second largest economy.”
CEO Chris Cummings commented: “The UK was the first G7 country to agree a RMB swap line with the People’s Bank of China and this agreement on clearing and settlement arrangements is the first outside Asia. Already nearly two-thirds of all RMB payments outside of China take place in London. The new agreement should not only increase the flow of RMB funds through the capital, but will make it easier for firms to do business with China.”