June 20, 2014
For those who think China and other nations are not serious about displacing the U.S. dollar, this should lend credence. We thought the UK was our closest ally.- Gold Goliath
The Bank of Communications, a major Chinese commercial bank, announced on Friday that the People’s Bank of China (PBoC) has approved it as one of the first group of market makers for direct trading between the Chinese yuan and the British pound sterling.
Direct trade between the two currencies was announced at the first UK-China Financial Forum in London on Wednesday, attended by British Chancellor of the Exchequer George Osborne, visiting Chinese Premier Li Keqiang and other senior policy makers from China and the UK.
The forum also witnessed deepened China-UK financial cooperation in a number of other areas, including an announcement of granting more British firms licenses that allow them to invest directly into Chinese markets.
According to the China Foreign Exchange Trade System on Wednesday, direct yuan-sterling trade will start from June 19.
Meanwhile, Standard Chartered Bank, HSBC and Deutsche Bank also announced that they have been made market makers in direct trade between the two currencies.
Earlier on Wednesday, the PBoC said it authorized China Construction Bank, the country’s second-largest commercial bank, to be the clearing bank for renminbi business in London, marking a further step in promoting the yuan’s international use.
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