The UK government has appointed three major banks to help deliver the planned sale of Britain’s RMB bond.
UK becomes the first government, apart from China, to sell a renminbi bond, in a deal worth RMB2bn.
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The proceeds from the planned sale of Britain’s RMB bond will be used to finance the nation’s foreign-currency reserves.
The three banks are: Bank of China, HSBC and Standard Chartered.
The move represents a key step for the UK’s ambition to become the key Western hub for the renminbi currency and comes as part of the government’s long term economic plan to establish Britain as the centre of global finance.
UK has more than doubled volumes for RMB payments from July 2013 to July 2014. Last year, total RMB foreign exchange trading in London averaged $25.3bn per day, a 50% rise from 2012.
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By GlobalDataThe government has appointed The Bank of England as HM Treasury’s agent to managing the issuance of the renminbi bond.
The RMB bond issue will attract other market players in both the private and official sectors.
Chancellor George Osborne said: "Key to our long term economic plan is increasing our exports to fast growing economies like China, and attracting more investment to our shores."
