May 23 – The Bank of England and the People’s Bank of China are working towards a joint RMB/GBP currency swap line after the banks’ governors met earlier this year to discuss a reciprocal exchange arrangement.
According to the Bank of England, the agreement will initiate a three-year currency swap program designed to “finance trade and direct investment between the two countries,” as well as strengthen the financial stability of the currency markets. As a result, England will be the first G7 nation to have direct access to the RMB. Continue reading
Sept. 16 – The United Kingdom and Chinese governments recently agreed to jointly work on developing products and services denominated in the Chinese local currency RMB, in a bid to develop the City of London into another major offshore RMB market.
In a statement issued after the fourth China-U.K. Economic and Financial Dialogue attended by Chinese Vice Premier Wang Qishan and U.K. Chancellor of the Exchequer George Osborne, the representatives said they welcome the private-sector-led development of London’s RMB market and agree to monitor and support the market, addressing any risks that may raise to harm financial stability. Continue reading