France: BOC becomes CNY clearing hub

Tuesday 16 September 2014 14:03 CET | News

Chinese central bank The Peoples Bank of China (PBOC) has authorized the Bank of China (BOC) as a clearing bank for CNY business in France, reports.

To that purpose, The PBOC has signed a memorandum of understanding with the French central bank La Banque de France to enable clearing hub operations in the local market.

There are also clearing hubs in Germany and UK, with a near future CNY clearing hub launch in Luxembourg.

A BOC spokesman said the mechanism of CNY clearing business in France will help Chinese and French companies and financial institutions to use the CNY for cross-border transactions and facilitate the free trade and investment between the 2 countries.

BOC has opened more than 1,200 inter-bank CNY clearing accounts and 1.7 million CNY accounts for corporate and individual clients overseas.

The bank almost doubled its CNY payment and clearing business from 2013 to CNY 112 trillion (USD 18.23 trillion) inQ1 2014, BOC data showed. BOC’s French branch handled more than CNY 1.3 trillion in clearing business in 2013.

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Keywords: France, BoC, PBOC, bank, clearing hub, CNY, Memorandum of Understanding, RMB, China, cross-border, ecommerce
Categories: Payments & Commerce
Countries: World
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