A report launched on Wednesday by the City of London Corporation and the People’s Bank of China revealed that Chinese currency transactions in London have increased significantly year-on-year.
The London RMB Business Quarterly report shows that daily yuan foreign exchange market transactions averaged roughly £70 billion ($82.2 billion) in the second quarter of this year, up nearly 14 percent from the previous quarter.
The news came as the City of London Corporation relaunched its influential yuan business initiative, a campaign which ran from 2012 to 2015 and that helped London become the leading offshore yuan trading hub outside Asia.
The aim of the reports is to help cement London’s position as a yuan hub, by encouraging the issuance of more yuan-denominated products and transactions in the City.
City of London Corporation Policy Chairman Catherine McGuinness told the Global Times that the new quarterly report is aimed at reaffirming London’s commitment to acting as the leading yuan trading hub outside Asia.
“With the further opening-up of China’s financial markets, the coming Shanghai-London Stock Connect, and the launch of more Sino-British bilateral financial cooperation projects, London plays a vital role in supporting the global use of the yuan and promoting the internationalization of China’s domestic capital market,” said Chief Representative of the People’s Bank of China Representative Office for Europe Jin Mei.
The report will help international investors understand the latest developments in the offshore yuan market in London, and the latest policies surrounding yuan internationalization, Jin added.
“The usage of yuan as a trade settlement currency has risen to fifth globally and its inclusion in the IMF SDR basket recognizes its current and future importance,” said City of London Corporation Special Adviser for Asia Sherry Madera.
The joint publication, which is backed by the UK Treasury, is part of the City of London Corporation’s Asia Next Decade campaign, which has identified increasing demand in the capital for more information on London’s yuan landscape.
The City is home to over 30 Chinese financial services firms, which have joined the London market to build their international presence, and more are in the process of opening a representative office.