City of London Corporation and People’s Bank of China highlight London’s booming RMB market

A report launched today by the City of London Corporation and People’s Bank of China Europe Representative Offfice reveals that Chinese currency transactions in London have increased significantly year-on-year.

The London RMB Business Quarterly report shows that daily RMB foreign exchange market transactions averaged roughly £70 billion in the second quarter of this year, up nearly 14 per cent on the previous quarter and over 30 per cent on 2017.

The news comes as the City Corporation relaunches its influential Renminbi business initiative, a campaign which ran from 2012 to 2015 that helped London become the leading offshore RMB trading hub outside of Asia.

The joint publication, which is backed by HM Treasury, is part of the City of London Corporation’s Asia Next Decade campaign, which has identified there is increasing demand in the capital for more information on London’s RMB landscape.

The aim of the reports, which will be published every quarter, is to help cement London’s position as an RMB hub, by encouraging the issuance of more RMB denominated products and transactions in the City.

City of London Corporation Policy Chairman, Catherine McGuinness said:

“London has long been the world’s number one foreign exchange hub, clearing more dollars than New York, more Euros than anywhere in the EU, and more RMB than any country outside Greater China.

“This new quarterly report aims to help us maintain this position, providing an overview of the market for Chinese currency in the City.

“I’m very happy to see that usage of the RMB has increased, and that London remains the leading RMB hub outside of Asia.”

Chief Representative of the People’s Bank of China’s Representative Office for Europe, Jin Mei said:

 "With the further opening-up of China's financial markets, the coming Shanghai-London Stock Connect, and the launch of more Sino-British bilateral financial cooperation projects, London plays a vital role in supporting the global use of the RMB and promoting the internationalisation of China's domestic capital market. 

 "I look forward to this English version of the "London Renminbi Business Quarterly" helping international investors understand the latest developments in the offshore RMB market in London, and the latest policies surrounding RMB internationalisation. 

 "At the same time, I also look forward to working with all relevant parties to promote the healthy, stable and sustainable development of the RMB offshore market in London”

City of London Corporation Special Adviser for Asia, Sherry Madera said:

“London’s position as a leading international financial centre perfectly complements the growth and opening-up of China’s markets, as well as the efforts of the Chinese government to internationalise the renminbi.

“The usage of RMB as a trade settlement currency has risen to 5th globally and its inclusion in the IMF SDR basket recognises its current and future importance.

It is important that London continue to support the internationalisation of RMB, especially to consider how London can expand further RMB products, volumes and innovation. This is why the City of London Corporation works closely with key partners like the PBoC and other financial firms in the City to drive this initiative.”

The City of London Corporation had a dedicated programme of engagement with China for many years, and has had representative offices in Beijing and Shanghai since 2008. There are more than 30 Chinese institutions in the City and more are in the process of opening a representative office.


Notes to editors

The City of London Corporation is the governing body of the Square Mile dedicated to a vibrant and thriving City, supporting a diverse and sustainable London within a globally-successful UK.

For more information contact:

Nathan Rodgers, Media Officer for Asia
City of London Corporation

44 (0)207 332 3451
44(0)7864 625086