North America’s First Renminbi Trading Hub
From Finance Canada website:
- “The renminbi ascended into the top five world currencies used in global payments in January 2015.
- Canadian exports to China have more than quadrupled since 2003, with two-way trade totalling $78 billion in 2014.
- The stock of foreign direct investment between Canada and China has increased more than seven-fold between 2005 and 2013, to a total of $21.5 billion.”
A past communiqué indicates:
“The following measures will facilitate the stable and healthy development of the RMB market in Canada and will help establish North America’s first offshore RMB centre in Canada:
- The Bank of Canada and the People’s Bank of China agreed to establish a reciprocal currency swap line.
- The Bank of Canada and the People’s Bank of China (PBoC) agreed to a Memorandum of Understanding on RMB clearing that will see the PBoC designate an RMB clearing bank in Canada.
- The designation of Canada as an offshore RMB clearing centre will benefit Canadian financial service providers in all financial centres of Canada. Chinese regulators have granted an initial Renminbi Qualified Foreign Institutional Investor (RQFII) quota in the amount of 50 billion RMB to Canadian financial institutions.”
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