Frankfurt becomes first European RMB clearing hub
Frankfurt is set to become the first European clearing centre for Renminbi (RMB), following the signing of a memorandum between Deutsche Bundesbank and the People’s Bank of China during a state visit by Chinese president Xi Jinping in Berlin last Friday.
The memorandum will allow companies to clear RMB payments made in Frankfurt and consequently strengthen trade and investment ties between China and Germany as well as improve Frankfurt’s standing as European financial centre.
Joachim Nagel, member of the Bundesbank’s Executive Board, highlighted the strategic positioning of Frankfurt as home of the German Bundesbank as well as the European Central Bank.
Carl-Ludwig Thiele, member of the Bundesbank’s Executive Board, commented: “This will make it much easier for the German real economy to clear and settle payments denominated in RMB, marking a major step forward in intensifying Germany’s economic relations with China.”
The agreement came only days ahead of a similar memorandum to be signed between the People’s Bank of China and the Bank of England, which will be concluded today.