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Deutsche Bank named a renminbi clearing bank in Frankfurt
The appointment makes Deutsche Bank the first European bank designated by the People’s Bank of China as a renminbi clearing bank, expanding its end to end processing for cross border yuan transactions.
Deutsche Bank has been appointed by the People’s Bank of China as a renminbi clearing bank in Frankfurt, giving the German lender a larger role in Beijing’s push to expand international use of the currency, according to Yahoo Finance.
The designation makes Deutsche Bank the first European bank to receive the clearing designation, a function that has historically been handled offshore by branches of major Chinese state owned lenders such as Bank of China, ICBC, Bank of Communications and China Construction Bank.
Deutsche Bank said it will provide direct end to end processing, clearing and settlement services for cross border renminbi transactions for European companies and financial institutions, with the goal of improving access to China’s onshore financial system, including payment infrastructure, liquidity and capital markets.
The move follows broader steps by China to promote the yuan in trade and investment, including measures announced in June, additional renminbi clearing appointments in Africa, and a five year plan stating the yuan exchange rate will be kept broadly stable while its use in international trade and investment expands.