HSBC gets China central bank nod for renminbi-pound direct trading

It's one of the market pioneers.

As efforts are ongoing to internationalize the renminbi (RMB), China's official currency, the People's Bank of China, China's central bank, has given multinational banking company HSBC approval to be one of the first market makers for direct trading of the renminbi and the British pound in China's onshore interbank foreign exchange market.

In a release, HSBC noted that, aside from being one of the most active participants in China's interbank foreign exchange market, it has been a champion of RMB internationalization since the process began.

HSBC was also the first international bank to settle RMB trade in six continents and has established RMB trade capabilities in over 50 markets around the world.

Here's more from HSBC:

Helen Wong, Deputy Chairman, President and Chief Executive Officer of HSBC Bank (China)
Company Limited, 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.”