Deutsche Bank will be the first non-Chinese bank to have yuan clearing
O Banco Popular da China, o BC do país, escolheu o Deutsche Bank para ser a primeira clearing house do yuan na União Europeia – em mais um passo para a internacionalização da moeda chinesa. As transações internacionais denominadas em yuan são tradicionalmente liquidadas pelas filiais dos quatro grandes bancos chineses. Agora, o Deutsche será […] The post Deutsche será primeiro banco não chinês a…
The People’s Bank of China, the country’s central bank, has chosen Deutsche Bank to be the first yuan clearing house in the European Union – another step towards the internationalization of the Chinese currency. International transactions denominated in yuan are traditionally settled by branches of the four major Chinese banks. Now, Deutsche will be the first non-Chinese financial institution to carry out these operations.
The German bank stated that its choice was due to its “growing involvement in facilitating trade, treasury and investment activities” between China and European Union countries. “This establishes a direct bridge with the Chinese financial system and reinforces our ability to support clients involved in trade and investment flows between Europe and China,” said Leo Yin, Deutsche Bank’s president in China.
According to the executive, European groups should use the new clearing service to reduce “currency friction” and streamline payments. For the Chinese, the novelty will facilitate financial and commercial operations with Europe, without having to leave the “yuan ecosystem.” The German bank has been part of the Chinese system alternative to SWIFT, the Cross-border Interbank Payment System (CIPS), since its launch in 2015.
Deutsche is the most active foreign bank in issuing Panda Bonds – bonds denominated in yuan, according to Bloomberg. With Chinese interest rates at historic lows, raising funds in yuan is on the rise. According to the Financial Times, issuers such as Goldman Sachs, insurance company Chubb and Temasek have increased their fundraising via Dim Sum bonds – also denominated in yuan, but issued in Hong Kong.
The yuan’s share of international payments has been growing but is still small. According to the Chinese Global Times, the percentage was 3.1% in June. In commercial transactions, the share was 8%. Chinese authorities have been seeking to encourage the adoption of the yuan in bilateral transactions with some of its main trading partners, bypassing SWIFT and the dollar.
The largest recent currency swaps were the renewal of five-year operations with Argentina and Malaysia.
Translated by urgent.news. Machine-written — may contain errors; check the original before relying on it.
