BOE, PBOC join forces to develop UK-based CNY clearing house

Wednesday 2 April 2014 13:43 CET | News

The Bank of England (BOE) and the Peoples Bank of China (PBOC) have agreed to sign a Memorandum of Understanding (MOU) on CNY clearing and settlement in London, reports.

The official document will set out the cooperation between the local bank and PBOC in matters of CNY clearing and settlement service in London.

The initiative consolidates London as the Western centre of CNY trading. SWIFT research indicates that 62% of CNY payments outside of China take place in London, while London asset managers are the only ones in the West being able to invest directly in Chinese stocks and shares in China’s currency.

The UK was the first G7 country to agree a CNY swap line with the PBOC, and the agreement on clearing and settlement arrangements, the first outside Asia, is the logical next step to giving the international market in London the confidence to expand their CNY activities.

A London clearing bank would complement the main clearing and settlement infrastructure in Hong Kong by supporting efficient transfer of funds within the Western time zone.

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Keywords: BOE, PBOC, CNY, online payments, exchange, cross-border, ecommerce
Categories: Payments & Commerce
Countries: World
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