HSBC among first market makers for direct trading of RMB and GBP
Friday, 20 June 2014 00:00
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HSBC has received approval from the People’s Bank of China, China’s central bank, to be one of the first market makers for direct trading of the renminbi (RMB) and the British pound (GBP) in China’s onshore interbank foreign exchange market.
Helen Wong, Deputy Chairman, President and Chief Executive Officer of HSBC Bank (China) Company Ltd., said: “Direct trading between RMB and GBP is a significant step forward in the internationalisation of the Chinese currency that will further enhance the use of RMB in the UK. In the process, it will facilitate the rising trade and investment flows between the two countries by simplifying foreign exchange transactions and reducing transactional costs. As a leading bank in the UK and the largest foreign bank in China, HSBC is ideally placed to help businesses benefit from the continuing RMB internationalisation.”
Frederic Boillereau, Global Head of Foreign Exchange, Commodities and Corporate Sales at HSBC, said: “In recent years we have seen incredible growth in the volume of RMB we trade on behalf of clients. As global appetite for access to the Chinese currency continues to rise, the development of efficient market infrastructure – including the appointment of market makers for direct RMB trading – is key to the currency’s internationalisation. We are delighted to have been chosen to play a central role in the next step of its evolution.”
HSBC is one of the most active participants in China’s interbank foreign exchange market. It was among the first banks appointed as market makers when direct convertibility of each of the Japanese yen, Australian dollar and New Zealand dollar was previously launched against the RMB.
The Bank has been a champion of RMB internationalisation since this historic process began. It was the first international bank to settle RMB trade in six continents and has established RMB trade capabilities in over 50 markets globally.
