London is to develop as Chinese RMB trading hub

Daylife/Reuters Pictures used by permission

China and the UK are to develop an offshore trading hub for the yuan based in London.

UK Chancellor George Osborne confirmed the agreement after meeting with Chinese vice-premier Wang Qishan in the UK. “We agreed to collaborate on the development of renminbi-denominated financial products and services in London,” he said…

As the yuan has slowly been appreciating and becoming more flexible, Hong Kong has been the only place that China has allowed as a centre for deposits in the Chinese currency. London is the largest foreign-exchange trading centre in the world.

Mr Osborne said that the UK represented an “attractive investment opportunity for Chinese investors and a gateway for further investment in Europe”…

China and the UK reaffirmed their commitment to the target of doubling trade to $100 billion by 2015.

One of the areas where American commerce has been progressing faster than American government — well, Congress, anyway — is growing our export business to China as they expand domestic consumption. China’s growing middle-class, entrepreneurs, small-businesses need goodies to grow, some of which the United States can provide.

Forex investing follows along with greater trade exchanges. Of course, it might take another decade and a different Congress before the United States government figures out what’s happening. And China gains more confidence in American banks.

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