The British and Chinese governments are in talks to establish a clearing bank in London for the RMB.
The move would put London in a leading position to offer yuan trade business in Europe. Hong Kong now is the largest yuan offshore hub and more than 80 percent of yuan trade settlement transactions are handled there. London presently relies mainly on Hong Kong’s offshore yuan infrastructure to obtain yuan liquidity and clearing services. The UK signed a 200 billion yuan three-year bilateral currency swap deal with China last year, and later was further granted an 80 billion yuan quota for a yearly investment plan.
Source: CCTV
