The Industrial and Commercial Bank of China (ICBC) has launched its services as a renminbi (RMB) clearing bank for Luxembourg, with Clearstream acting at the securities settlement system, providing offshore cross-border RMB liquidity.
The launch hopes to increase market confidence in the global offshore RMB market, build liquidity and advance the RMB market in general.
Luxembourg is already an established hub for offshore RMB activity in the Eurozone, however ICBC will promote cross-border activity directly with China.
Denis Noonan, vice president of core product development at Clearstream, said: “We have signed a memorandum of understanding with ICBC Luxembourg and we plan to work very closely to develop further services to facilitate renminbi in the offshore markets.”
“On a global basis, together with all of our contacts and partners in all these different individual markets, we’re really dedicated to bringing as much liquidity to the offshore markets in the renminbi as possible.”
ICBC is now one of four European banks to provide RMB clearing and settlement, along with the Bank of China in Frankfurt and Paris and the Chinese Construction Bank in London.
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