Euroclear Bank to Settle Transactions in Renminbi
Euroclear Bank has announced that clients will be able to settle transactions and deposit Eurobonds and Hong Kong domestic securities denominated in renminbi
(RMB) in Euroclear Bank, the international central securities depository. The first transactions in RMB will be settled on 27 September 2010.
Olivier Grimonpont, regional head and general manager of the Euroclear Bank branch office in Hong Kong, said: “With a consistent presence in Asia since 1987 and a comprehensive operations centre in Hong Kong, Euroclear Bank is ideally positioned to support the booming renminbi-denominated securities market. As offshore borrowers look to raise funding in renminbi or to broaden their investor base, investors will be able to settle these transactions in Euroclear Bank and eliminate foreign-exchange risk by having to settle in alternative currencies. The steady supply of renminbi Eurobond issues to date, with ever-increasing sizes and tenors, demonstrates a growing market appetite for these securities.”
According to the People’s Bank of China, the volume of global trade settled in renminbi has grown from RMB3.6bn in the first half of 2009 to RMB70.6bn in the first half of 2010. The People’s Bank of China and the Hong Kong Monetary Authority (HKMA) recently reached an agreement for the offshore renminbi business to be supported in Hong Kong.