Standard Chartered and the Agricultural Bank of China have signed a Memorandum of Understanding that cements a partnership to provide Renminbi clearing services in the UK.
Through this agreement, financial institutions and corporates will be able to work with Standard Chartered UK and ABC UK to execute RMB transactions, and benefit from the advantages brought about from the internationalisation of the RMB.
“Building on its position as the world’s largest FX centre, the availability of RMB clearing services in the UK will strengthen London’s position as a leading offshore RMB centre.,” said a release from Standard Chartered.
It is hoped that the launch of clearing services in the UK will also pave the way for greater awareness and the development of more RMB related products and services in areas such as trade finance, global cash management, asset management, and bond settlement through improved efficiency in the London time zone.
Peter Sands, group CEO of Standard Chartered, said: “The strategic partnership with ABC is not only a win-win for both parties, but also an opportunity for us to collaborate and offer our respective clients with opportunities to leverage relevant expertise for growth. Today’s MOU renewal offers both banks with unique opportunities to strengthen our value proposition and grow from strength to strength.”
“London’s position as a leading international financial centre is enhanced by the ability to offer onshore clearing services that allow ‘on-demand’ access to settle RMB denominated services within the London time zone; the opportunity to boost RMB liquidity in London could be used to fund large investment projects and support the development of other financial activities.”
“We are proud to contribute to the strengthening of economic ties between the two nations, as the RMB continues to internationalise.”
“ABC has the most extensive distribution network and abundant RMB funds and will inject sufficient RMB liquidity into the London market”, said Zhang Yun, president of ABC bank.
“By integrating their respective strengths in network and funding, together, ABC and Standard Chartered will act as local RMB clearers, provide comprehensive trade, investment and financing services to market players in London, and support Chinese companies operating in UK with a package of cross-border financial solutions."
"The signing of this extended strategic cooperation agreement is another major move to foster a stronger partnership in which we will jointly build the London offshore RMB center and promote the cross-border use of RMB. Our aim is to further explore cooperation possibilities and achieve a win-win situation for ABC, Standard Chartered and our clients.”
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