Royal Bank of Canada (RBC) has completed the first cross-border Renminbi (RMB) payment on Canada’s RMB Trading Hub through its designated clearing bank, Industrial & Commercial Bank of China (Canada).
The new hub, which is the first of its kind in the Americas, was inaugurated on March 23 in Toronto. In doing so, Toronto aligned itself with major financial cities including London and Singapore that have also established agreements to become Chinese currency trading hubs.
“RBC has been active with industry peers in promoting and securing the opportunity for Canada to become a Renminbi trading hub,” said James Rausch, head of transaction banking, banks, brokers and exchanges at RBC Investor & Treasury Services.
“We view this as a positive development for Canada, for our clients, and for trade between Canada and China."
At the inauguration ceremany, RBC, alongside other Canadian banks and government delegates, signed a Memorandum of Understanding with respect to Bilateral Renminbi Cooperation.
“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,” said 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.