Bank of China approved for clearing in Frankfurt
June 20, 2014, 12:08 am TWN
BEIJING--China's central bank has approved Bank of China, one of the country's major financial institutions, as the clearing bank for yuan transactions in Germany's financial center Frankfurt, it said Thursday.
The People's Bank of China (PBOC), the central bank, made the announcement in a one-sentence statement on its website.
The designation was based on a memorandum of understanding with the Deutsche Bundesbank, Germany's central bank.
State-owned Bank of China is one of China's so-called “big four” banks.
The announcement came a day after the PBOC announced that a subsidiary of China Construction Bank, the country's second-largest lender, had been chosen to undertake yuan clearing business in London.
China on Thursday also started direct trade between the yuan, also known as the renminbi, and Britain's pound, without using the U.S. dollar as an intermediary.
Moves to internationalize the yuan have picked up pace in line with growth in China's economy, with direct trading moving to more currencies.