Interview: RMB sees growing significance as Chinese language economic system grows, says London finance policymaker – Macau Enterprise

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With China being the 2nd biggest economy worldwide and poised to grow even more, it is “just natural” that the importance of its currency renminbi (RMB) is also growing, the City of London policy chief has actually said.

As the Chinese economy grows, “inevitably, its currency is going to likewise acquire significance and as China seeks to internationalize it, then obviously we will see the RMB continues to be a considerable currency in worldwide markets,” said Catherine McGuinness, chair of the Policy and Resources Committee at the City of London Corporation.

London has actually contributed in the development of the Chinese currency, as it has actually become the world’s leading offshore RMB trading center. “We’ve seen a fantastic development in the trading of the RMB over the last few years,” McGuinness said in a recent interview with Xinhua.

According to the London RMB Business Quarterly report provided in March, the average day-to-day offshore RMB trading volume in London saw a 7-percent increase year on year in 2021, and there was a 130-percent boost in the value of the RMB-dominated Dim Sum bonds that were noted on the London Stock Exchange.

Mentioning the popularity of the RMB in London, McGuinness told Xinhua that it is “not unexpected” as London is the center for foreign exchange, and “we have a strong connection with trade in China.”

“We fully anticipate London with its global reach, its innovative community, to remain at the heart of currency trading moving forward,” she stated.

Mentioning the ecosystem and chances London provides, McGuinness said the Shanghai-London Stock Connect, for instance, is “a fantastic example of how an innovative item can be utilized to make it possible for financiers to gain access to China’s markets and Chinese investors, to gain access to investment chances themselves.”

“It’s simply one instance of how we might deal with London’s community and with the innovation that you can find here in order to offer access to international financial investment in capital markets,” she included.

Now there are more than 40 Chinese banks in the City of London, she stated.

“I think they’re an excellent bridge to the chances that this worldwide monetary center can bring. They can help link besides the global institutions with the trading chances that there are here,” she worried.

On the effect of COVID-19, McGuinness stated that “the pandemic has been a challenge for everyone, however it hasn’t stopped trading in the worldwide financial center, which London is.”

“People have needed access to capital, they’ve required access to forex,” she added.

As for the prospect of the RMB’s internationalization, McGuinness noted that “there are lots of difficulties that we all deal with in the years ahead.”

“There will be changes ahead, depending on how the world moves, however we will likewise see the RMB continues to be a crucial player on the international stage,” she said.