The German finance sector welcomes the agreement to open a clearing bank in Frankfurt for trade in renminbi. Frankfurt is the first financial centre in Europe with such an agreement and the only renminbi clearinghouse in the euro zone. Companies in Germany and Europe will benefit in China trading of improved conditions.
Lutz Raettig: “As a financial centre, we are united in supporting the initiative and look forward to closer cooperation with our Chinese partners.”
The German finance sector welcomes the Memorandum of Understanding, signed today in Berlin by the Deutsche Bundesbank and the People’s Bank of China, designated Frankfurt as a clearinghouse for trade in the Chinese currency renminbi. Frankfurt is the first financial centre in Europe with such an agreement and the only renminbi clearinghouse in the euro zone. The financial centre’s leading representatives from all banking groups have expressed that the developing the site into a renminbi trading centre is a top priority.
Lutz Raettig, Chairman of the Executive Committee of Frankfurt Main Finance: “The importance and dynamic development of the real economic ties between Germany and China have undoubtedly helped us to secure this position. Once the decision on the Clearing Bank is final, the financial centre is prepared to implement renminbi across the product spectrum. As a financial centre, we are united in supporting the initiative and look forward to closer cooperation with our Chinese partners.”
Since October 2013 there has been a swap agreement between the ECB and the People’s Bank of China in the amount of 350 billion yuan and 45 billion euros. The planned renminbi clearinghouse for the euro zone this agreement will breathe new life into this agreement.
Once the clearing bank is named and becomes active, German companies will no longer be dependent on Asian centres in Hong Kong or Shanghai, who have been considered less attractive due to the time difference and the necessary intermediary trade on the US dollar. Once the clearing bank is operational, conducting business with China in renminbi will be more simple, direct, lower cost and with less risk. This particularly benefits the German Mittelstand (SMEs). Frankfurt is expected to develop into the leading renminbi trading centre between the euro zone, the Asian and the American continent, not only for Germany but also for the entire euro area and beyond.
For more information about the renminbi trading centre in Frankfurt, visit the website
Statistics on the importance of the renminbi as a currency for international payments can be found at SWIFT: http://www.swift.com/products_services/renminbi_reports