China to set yuan clearing bank in Sydney

A Chinese bank worker counts stacks of 1

China will designate a clearing bank in Sydney for overseas trading of its yuan currency, a top Australian official said on Thursday as Beijing seeks to make the tightly-controlled unit more international.

The Australian financial capital would follow London and Frankfurt as a location for a Chinese bank to clear transactions in yuan, also known as the renminbi.

“I am confident that we will have, before the end of the year, a designated clearing bank for renminbi trading in Australia with the opportunity for an Australian bank to be a market maker,” Australia’s Treasurer Joe Hockey told the Australian Chamber of Commerce in Shanghai.

Beijing announced this month that the Bank of China would be the clearing bank for yuan dealings in Frankfurt while China Construction Bank won the bid for London.

Chinese authorities keep a tight grip on the value of the yuan and limit capital flows into and out of the country.

But China — the world’s second-largest economy — is gradually moving to implement financial reforms by making its exchange rate more flexible and opening its capital account for investment and financial transactions.

The yuan remained the seventh most used currency for global payments in May, transaction services organisation SWIFT (Society for Worldwide Interbank Financial Telecommunication) said on Thursday although it accounted for only 1.47 percent of the total.

“China has come a very long way in relation to the renminbi,” Hockey told journalists. “In many ways they’ve moved faster to deregulate their currency than many other countries and that hasn’t been properly recognised by a lot of the critics.

“The best way to handle the Chinese in relation to the renminbi is to offer to be there to engage in facilitating more active trading, greater liquidity in various markets,” he said.

Some major trading countries, notably the United States, have criticised China’s pace of reform as too slow and called for Beijing to let its currency float more freely.

Chinese President Xi Jinping is due to visit Australia in November for a summit of the G20 group of nations, and Hockey said the two countries hope to reach a free trade agreement before the end of the year.

 

 

 

 

 

 

Source : Channel News Asia | June 27, 2014

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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