LONDON (MNI) – London is best placed to become the ‘Western Hub’ of
the offshore Renmimbi market, UK Financial Secretary Greg Clark said
today.
“London is perfectly placed to act as the ‘Western Hub’. At the end
of 2011, the volume of RMB deposits in London was over RMB 100 billion.
Spot RMB forex traded in London constitutes over a quarter of the global
offshore market, having grown by over 80% last year,” Clark told
Euromoney’s Global Offshore RMB Funding Forum here.
Clark said that London would become a centre for general offshore
funding in renmnimbi in the same way that it had become a funding centre
in the Eurodollar market during the 1960’s.
“And just as London pioneered the development of international
financial markets for those currencies, so it will partner Hong Kong and
other international financial centres in supporting the rise in the
international use of the RMB”.
Chinese banks based in London were likely to play a key role in
the development of the renmimbi market just as US banks had with the
growth of the Eurodollar market, the minister said.
Clark said that the market would help strengthen trade ties between
the UK, China and Europe and help UK and EU firms tap into the
significant export potential offered by rapid Chinese economic growth.
The minister said there should be no conflict between the need for
firm and effective regulation and the promotion of a strong and open
financial sector in London.
“…Promoting a safer, more stable banking system is essential to
promote confidence in financial services, and to justify an
international reputation for prudence and integrity,” he said.
The decision to endow the Bank of England with greater oversight
powers was an “important step” towards achieving that goal, Clark said.
–London Bureau; Tel: +442078627492; email: dthomas@marketnews.com
[TOPICS: M$B$$$,MGB$$$]
