The Bank of
England today took a crucial step towards boosting the City as a centre of
trading in the Chinese renminbi after agreeing a currency swap deal with the
Bank of China.
The
announcement of the three-year swap — to allow Threadneedle Street to draw down
renminbi from China’s central bank to supply to UK firms and vice versa — came
after talks between Governor Sir Mervyn King and his counterpart in Beijing.
Bankers
have long called for a swap to allay fears over a lack of liquidity in China’s
tightly-controlled currency, which has hampered trading in the renminbi. The
Bank of England had resisted as it usually reserves swap lines for emergencies.
A Standard
Chartered spokesman said the deal “will have a positive psychological effect on
the market in the City and encourage more companies to do business in
renminbi.” HSBC UK economist John Zhu said: “This will provide greater
confidence for businesses that trade with China and represents a positive step
to improving convertibility between sterling and renminbi.”
Hong Kong
currently has 80% of off-shore renminbi trading, with London and Singapore
sharing the rest.
Related Articles:
RMB on way to becoming global reserve currency: IMF official
"The U in Kundalini"- Oct 18, 2012 (Kryon channeled by Lee Carroll) - (Subjects: Kundalini, Unification, EU, Nobel Peace Prize 2012, Middle East, South America, Only 5 Currencies on Earth, Old Souls, Duality will dismiss, 3D Humanity will melt with Multi dimensional higher self, Global Unity… etc.)
"The U in Kundalini"- Oct 18, 2012 (Kryon channeled by Lee Carroll) - (Subjects: Kundalini, Unification, EU, Nobel Peace Prize 2012, Middle East, South America, Only 5 Currencies on Earth, Old Souls, Duality will dismiss, 3D Humanity will melt with Multi dimensional higher self, Global Unity… etc.)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.