Canada to open first renminbi trading hub in the Americas

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Ontario is launching the Americas’ first trading hub for the Chinese currency renminbi (RMB), which will enable businesses across Canada to convert Canadian dollars directly into Chinese currency.

The new hub is meant to reduce costs for businesses and boost trade with China, according to Ontario’s Ministry of Economic Development, Employment and Infrastructure.

The hub will lower overall business costs for Canadian businesses by removing the need for an intermediate conversion to US dollars, while supporting increased trade between Canada and China, it said.

“The Ontario government is proud to have played an important role in establishing the new RMB trading hub in Canada,” said Charles Sousa, minister of Finance.

“The innovative hub will enable Canadian businesses to save money and improve their productivity, stimulating economic growth and job creation in Ontario and across Canada.”

The RMB trading hub reinforces Toronto’s stature as North America’s second-largest financial center, which helps to increase the province’s competitiveness on a global scale, he said.

Toronto is the headquarters of Canada’s financial services industry, while much of Canada-China trade passes through Vancouver due to BC’s close ties to the Asia Pacific market.

It also ranks sixth on Banker magazine’s list of best financial centers in the world.

The Canadian RMB trading hub joins an elite group of trading hubs around the world for the Chinese currency, also known as the yuan, the world’s second-most used currency in global finance.

With this hub, Ontario becomes a gateway for the flow of RMB through the Americas. Operated through existing financial institutions and infrastructure in Canada, the RMB trading hub will allow Canadian banks and other agents to develop RMB financial currency and exchange services across Canada, and elsewhere in the Americas.

Ontario and British Columbia worked collaboratively in a supportive role to assist the federal government in its negotiations with China to establish an RMB trading hub in Canada.

Recently, Ontario Premier Kathleen Wynne led a trade mission to China that attracted $966 million in new investment by Chinese companies for Ontario. These projects will create 1,800 jobs in communities across the province.

So far, London, Frankfurt, Luxembourg, Hong Kong, Singapore, Taiwan and Sydney all host RMB trading hubs.

 

 

Source : China Daily | March 25, 2015

Thomas D’Innocenzi

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About thomasdinnocenzi

Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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