Industrial and Commercial Bank of China (ICBC) has reportedly inked a deal with Los Angeles city government to establish an offshore yuan hub in California.
The yuan center will promote cross-border yuan trade with China, reported Reuters.
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A Chinese bank executive said that US dollar remains as the dominant currency in the world, and American firms are not willing to accept the yuan and so the country is lagging behind other markets in setting up offshore yuan trading hubs.
ICBC said that the set up of an offshore RMB center in the US is expected lay the foundations for greater yuan trade with China.
The publication reported that Beijing intends to promote its currency to more international investors and turn it into a global reserve currency.
In the first nine months of 2014, the cross-border business of ICBC was worth approximately CNY28tn, an increase of 80% from the same period in 2013.
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By GlobalDataHowever, the cross-border payments between the United States and China reached more than CNY160bn during the same period.
