Reserve Bank governor Glenn Stevens says a move to establish an
official clearing bank for the local renminbi market should fuel growth
in direct trade between the currencies of Australia and China.
Bank of China has been appointed the clearing bank for the local renminbi (RMB) market by the Chinese central bank, and Mr Stevens and several other senior figures from the financial sector and government spoke at a launch marking the occasion on Monday.
Bank of China's "official" status will mean it has greater access to China's financial system, Mr Stevens said, and marks another step in long-running efforts to internationalise the Chinese currency, also known as the yuan.
Only a very small portion of the more than $150 billion-a-year in two-way trade with China is settled in RMB. But Mr Stevens said China's sheer size suggested the RMB trade would only increase, and Australia's financial system needed to be prepared.
Bank of China has been appointed the clearing bank for the local renminbi (RMB) market by the Chinese central bank, and Mr Stevens and several other senior figures from the financial sector and government spoke at a launch marking the occasion on Monday.
Bank of China's "official" status will mean it has greater access to China's financial system, Mr Stevens said, and marks another step in long-running efforts to internationalise the Chinese currency, also known as the yuan.
Only a very small portion of the more than $150 billion-a-year in two-way trade with China is settled in RMB. But Mr Stevens said China's sheer size suggested the RMB trade would only increase, and Australia's financial system needed to be prepared.
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