[Image courtesy of www.cityoflondon.gov.uk]
Yesterday, CBI member The City of London launched a new initiative aimed at strengthening London’s position as the leading western hub for international renminbi (RMB) business.
The initiative will help deliver a private and public sector strategy for London to become a centre for RMB products and services, complementing Hong Kong and other financial centres.
Current members of the initiative are Bank of China, Barclays, Deutsche Bank, HSBC, and Standard Chartered, with observers from HM Treasury, the Bank of England, and the Financial Services Authority.
The initiative seeks to provide leadership to the wider financial markets on technical, infrastructure, and regulatory issues relating to the RMB product and services in London. In addition, it advises HM Treasury on maximising London's capacity to trade, clear, and settle RMB, and articulates practical next steps and long-term aims for the further development of the RMB market in London. The group also advises HM Treasury and other U.K. authorities on any financial stability concerns that members may perceive.
The first report published by the initiative highlights the RMB products and services currently available in London and the volume of business transacted in London in 2011.
George Osborne, Chancellor of the Exchequer, said, "I welcome this initiative, which will further strengthen London's development as the leading western hub for the international renminbi market. As the world's leading financial centre, London is uniquely well placed to assist China in its goal of further expanding the international use of the RMB.
"Today's report also provides some clear pointers for the market's future development, and, with the strong support of the Government, I am confident that London's private sector will rise to tomorrow's challenges."
Stuart Fraser, Chairman of the initiative's Steering Committee and Policy Chairman of the City of London Corporation, said, "As the world's leading global financial centre, London is perfectly positioned to act as the western hub for RMB as exchange controls are gradually relaxed. London has many natural advantages, including: time-zone, a trusted legal system, a respected regulatory framework, deep pools of liquidity, and a strong track record of innovation. We are also home to global institutions that have expertise in utilising RMB-denominated products and services to benefit clients by facilitating trade with China. This will increase exports and help deliver jobs and growth in the U.K. and Europe."
Please click here to read the full press release by the City of London and to access the initiative's first report.