Global Overview of RMB
The Renminbi (RMB) has become the 5th most used global payment currency and is the 2nd most used currency in trade finance. China overtook the U.S. in 2013 to become the world’s largest trading nation, with its trade in goods surpassing US$ 4 trillion.
Today, more than one third of financial institutions around the world are now using the RMB for payments to China and Hong Kong. From 2012 to 2014, the adoption rates for the RMB were:
- Asia: 40% (+22% increase)
- The Americas: 32% (+44% increase)
- Europe: 31% (+47% increase)
- Middle East/Africa: 26% (+83% increase)
In November 2014, an agreement was reached between Canada and China, which designated Canada as the first RMB trading hub in the Americas. The function of an offshore RMB hub is to enable RMB-denominated transactions to be cleared and settled outside of China. The RMB agreement includes a swap-line between the Canadian and Chinese central banks, the designation of the first clearing bank in the Americas - Industrial and Commercial Bank of China (Canada), and an investor quota that allows access to Chinese capital markets.
Canada’s “RMB Gateway to North America” provides more efficient access to China and various services such as:
- INVESTMENT OPTIONS IN RMB
such as Corporate Deposits, Term Deposits, Dim Sum Bonds, Onshore Bond Market, ETFs.
- FOREIGN INVESTOR ACCESS
to China through programs such as QFII, RQFII, and Shanghai-Hong Kong Stock Connect.
- EXPORTERS/IMPORTERS CAN BENEFIT
from lower transaction and funding costs.
- FOREIGN EXCHANGE SERVICES IN RMB
are available through Canadian financial institutions. Industrial and Commercial Bank of China (Canada) provides clearing services and is the first RMB clearing bank in North America.
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