Beijing Promotes International Use of RMB Yuan
Sunday, China’s state-owned currency marketplace said it is preparing to open branches in London and New York as part of efforts to promote the RMB Yuan’s global status.
The China Foreign Exchange Trade System (CFETS), a subsidiary of China’s central bank (PBOC), said in a statement that by expanding its network offshore, it aims to serve more overseas institutions and become a “main trading platform and pricing center” for the RMB Yuan globally.
China has been gradually loosening its capital controls to allow more foreign participation in its onshore RMB Yuan market. Beijing is also fostering offshore RMB Yuan centers to promote international use of the Chinese currency.
The CFETS said that it would further strengthen cooperation with overseas trading platforms, and aim to eventually provide trading services 24 hours a day, 7 days a week.
The market platform extended its trading hours for China’s onshore Yuan this year to end trading at 11:30p local time from 4:30p previously.
“CFETS is willing to provide comprehensive service and support to British institutions who participate in China’s inter-bank market, and strengthen cooperation with them as Chinese companies go offshore,” Sun Jie, executive vice president of CFETS, said in Shanghai.
The event, focused on the topic of RMB Yuan’s internationalization, was attended by Chinese and British regulators, as well as financial institutions.
Britain and China have been working hard in recent years to strengthen their economic relationship, despite strong differences due to Britain’s criticism of China’s human rights record. Chinese President Xi Jinping paid a state visit to Britain last October to seal what both call a “Golden Time” in relations.
Xavier Rolet, CEO of the London Stock Exchange Group (L:LSE) said Sunday that London is now the world’s biggest offshore Yuan center after Hong Kong.
LSE is working with the Shanghai Stock Exchange to launch a cross-border investment program to link the British and Chinese stock markets.
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