Will boost London's post as top offshore RMB hub.
According to a release, Standard Chartered Bank and Agricultural Bank of China Limited signed a Memorandum of Understanding (MOU) today that cements a partnership to provide Renminbi (RMB) clearing services in the UK.
Through this agreement, financial institutions and corporates will be able to work with Standard Chartered UK and ABC UK to execute RMB transactions, and benefit from the advantages brought about from the internationalisation of the RMB.
Building on its position as the world’s largest FX centre, the availability of RMB clearing services in the UK will strengthen London’s position as a leading offshore RMB centre. It also paves the way for greater awareness and the development of more RMB related products and services in areas such as trade finance, global cash management, asset management, and bond settlement through improved efficiency in the London time zone.
Today’s agreement is a testament to ABC’s strong onshore presence and RMB liquidity in China, and Standard Chartered’s international clearing expertise, leading position in offshore RMB and its on-the-ground capability in supporting clients in the UK. The renewal of the MOU signed between Standard Chartered and ABC three years ago will see both institutions continue to expand in areas of partnership which include SME financing and continued collaboration to support Chinese corporates venturing overseas.
ABC’s extensive network, customer base and knowledge of the local market, coupled with Standard Chartered’s experience and expertise in supporting corporates and financial institutions across its international network offer clients the opportunity to tap on complementary solutions to best meet their growth needs.
Peter Sands, Group CEO of Standard Chartered, said, “The strategic partnership with ABC is not only a win-win for both parties, but also an opportunity for us to collaborate and offer our respective clients with opportunities to leverage relevant expertise for growth. Today’s MOU renewal offers both banks with unique opportunities to strengthen our value proposition and grow from strength to strength.
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