RBC Completes First Cross-Border Payment on New RMB Hub
Royal Bank of Canada announced Wednesday that it has completed of the first cross-border renminbi (RMB) payment on Canada’s new RMB trading hub through the hub’s designated clearing bank, Industrial & Commercial Bank of China (Canada).
The cross border bank-to-bank payment follows the inauguration ceremony of Canada’s RMB Trading Hub, held in Toronto on March 23. At the ceremony, RBC, alongside other Canadian banks and government delegates, signed a Memorandum of Understanding with respect to Bilateral Renminbi Cooperation.
“RBC has been active with industry peers in promoting and securing the opportunity for Canada to become a renminbi trading hub,” says James Rausch, head of transaction banking – banks, brokers and exchanges, RBC Investor & Treasury Services. “Given RBC’s long-standing relationship with China, we view this as a positive development for Canada, for our clients, and for trade between Canada and China.”
“RBC looks forward to supporting the RMB Trading Hub in Canada, and expects it will enable Canadian companies to see greater access to Chinese trade and investment opportunities,” says Philippe Savoy, managing director, head of foreign exchange sales, Americas, RBC Capital Markets.
RBC was the first North American bank to have a presence in China, having entered into a correspondent banking relationship with the People’s Bank of China in 1954. RBC also has experience with Chinese financial markets in advising clients on direct investment in Chinese mainland securities.