A New RMB Trade Center in Frankfurt?

[Randy W]

China, Germany eye RMB hub in Frankfurt

 

China and Germany on Friday signed a memorandum of understating (MoU) on establishing an RMB clearing and settlement mechanism in Frankfurt, moving the German city closer to becoming an offshore RMB center.

 

The document was inked here by China's central bank, or the People's Bank of China, and its German counterpart, the Deutsche Bundesbank, in the presence of visiting Chinese President Xi Jinping and German Chancellor Angela Merkel.

 

The German side "welcomes RMB to play a bigger role in the international financial and monetary systems," says a joint statement issued after talks between Xi and Merkel.

The two sides welcome the signing of the MoU, and a clearing bank will be designated later, according to the statement.