Britain and China have entered into an agreement under which London will serve as global offshore hub for trading the Chinese currency the Renminbi (RMB) and will also become a hub for RMB investment into China.
Part of the Economic and Financial Dialogue (EFD) between the two countries, in partnership with Hong Kong, the agreement will allow investors to apply for a licence to invest RMB directly into China under a RMB Qualified Foreign Institutional Investor (RQFII) and also allow Chinese banks in London to establish wholesale branches in the UK.
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British and China said in a joint statement that both sides welcomed this as an important step that cements London’s major role as one of the most important global centres for RMB trading.
Both the countries have already placed London as a RMB centre in September 2011 and also as the Western hub for offshore RMB trading, in partnership with Hong Kong.
British Chancellor George Osborne said China should have a global currency.
"Today we agreed the next big step in making London – already the global centre for finance – a major global centre for trading and now investing the Chinese currency too," Osborne added.
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By GlobalData"More trade and more investment, means more business and more jobs for Britain."
