BoE Names Chinese Bank As London Clearing House for CNY

The Bank of England has appointed one of China’s “big four” banks as the Chinese currency clearing bank in London.

The China Construction Bank will be the London renminbi clearing house.

The appointment is part of a plan to make London a hub for Chinese currency dealing.

Standard Life chair Sir Gerry Grimstone said renminbi trading is the most important issue facing the City of London at the moment.

In March, the Bank of England signed a memorandum of understanding with the People’s Bank of China setting out the deal.

The banks have said they want to encourage the cross-border use of renminbi, or yuan, to rebalance the global economy.

Bank of England governor Mark Carney said the appointment was an “important milestone”, because the Chinese bank would “play a valuable role in facilitating greater use of the RMB [renminbi] for trade, investment and other economic activities in the UK”

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza