Canadian renminbi hub status to boost export growth

摘要

Canada's designation as a renminbi (RMB) trading hub has excited banks aiming to do business in China, now that a significant barrier to trade has been removed, bankers have told Trade Finance. A memorandum of understanding was signed last month between the Chinese and Canadian governments, designating Toronto as Canada's RMB trading hub, and the Industrial & Commercial Bank of China (ICBC) as the clearing bank. The announcement means that Canadian firms can now purchase RMB on the open market without having to convert Canadian dollars to an intermediary currency first, creating significant cost savings and, as a result, more bilateral trade.