RMB

Canada Seeks to Become RMB Trading Centre for the Americas

AdvantageBC  and The Toronto Financial Services Alliance (TFSA)—whose working group includes CIBC, TD Bank Group,  HSBC,  Scotiabank and BMO— announced today they would work together, with officials from the federal, Ontario and BC governments, and the financial industry, to promote Canada as a trading hub for the Chinese currency, the Renminbi (RMB). Representatives of Canada’s business community have already expressed support for the initiative.  « The establishment of Canada as a RMB centre will continue to raise our stature as a global financial centre and will facilitate increased trade and investment with China, thus benefitting the entire Canadian economy, » said Perrin Beatty, President & CEO of the Canadian Chamber of Commerce. Support has also been expressed from the Canadian Council of Chief Executives, the Canadian Manufacturers & Exporters and the Canada China Business Council.

Work is already well underway to support this initiative.  For example, in 2013, BC issued a government bond denominated in RMB to become the first « dim sum » bond in Canada. It was quickly oversubscribed, largely by Asian investors.  Also last year, Ontario’s TFSA established a working group with representation from thirteen national financial companies and three public sector observers (see list below).  The working group is co-chaired by financial executives from BMO Financial Group, HSBC Bank Canada, Bank of China (Canada) and the Industrial and Commercial Bank of China (Canada). A similar group is being established in British Columbia.  TFSA and AdvantageBC have also established a steering committee to coordinate the work of the two groups.

« Establishing the first offshore renminbi hub in North America for clearing and settling payments would represent a significant step in strengthening Canada’s economic relationship with China and make Canadian companies more competitive. Canadian companies would benefit from reductions in costs associated with foreign exchange trading and currency hedging, and Canada would become even more attractive for international investors drawn to a diverse portfolio of trade and investor solutions offered in a stable, trusted, environment, » said C.J. Gavsie, Managing Director, Global Head of Foreign Exchange Products & China Capital Markets, BMO Financial Group.

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Via: CNW