Canada & China | Capital Markets
Canada and China have agreed to support the increased use of renminbi in trade, commerce and investment between the two countries. The accord, which includes the establishment of a reciprocal currency swap line, establishes Toronto as North America’s first offshore renminbi hub. “This is fantastic news for Canadian companies,” says C.L. Gavsie, global head of FX products and China capital markets, BMO Capital Markets. “The trading hub will ensure that Canadian firms doing business in China can purchase renminbi on the open market without converting to another currency first.”
Industrial and Commercial Bank of China will clear renminbi transactions in Toronto. ICBC also won the right to clear renminbi transactions in Doha, Qatar, the first trading hub for the Chinese currency in the Middle East.