Renminbi denominated products move closer to US reality

Trading and clearing in renminbi denominated financial products has taken another step forward with the announcement  that the Industrial and Commercial Bank of China (ICBC) is issuing a certificate of deposit through its New York branch.

Previously, such certificates issued by New York branches of Chinese banks were settled through Euroclear in Europe, but the new certificate will be settled by the US-based Depository Trust Company, a wholly owned subsidiary of The Depository Trust & Clearing Corp (DTCC). BNY Mellon is the issuing and paying agent on the new certificate.

The issuance marks a result from the work of the Working Group on US RMB Trading and Clearing – whose members include ICBC itself, but also DTCC, BNY Mellon, and is chaired by former New York mayor Michael Bloomberg, with other well known people with links to the US financial sector such as Mary Schapiro (vice-chair), Thomas Donohue, Timothy Geithner and Henry Paulson Jr as co-chairs.

Launching the certifiate, IBC chairman Jian Jianqing noted that there is growing demand globally for renminbi denominated financial products, not just in the US. He said that payments in renminbi with the global payments system are growing faster than overall global payments in all currencies.

According to the Swift network, the renminbi was the fifth most active currency for global payments in March. The value of payments in the currency increased more than 18% between February and March.


Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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