China has named Deutsche Bank as its first European renminbi clearing bank, giving the lender authority to process, clear and settle cross-border yuan transactions for European clients. The move follows Beijing's broader push this year to expand international use of the renminbi and cut reliance on a U.S. dollar-dominated payment system.
Deutsche Bank said Monday that China has designated it as a clearing bank for the renminbi, marking the first time a European lender has received the role. The bank will provide direct processing, clearing and settlement services for cross-border renminbi transactions for European financial institutions and businesses, acting as a connection point to China's payment systems.
The designation gives European businesses and financial institutions direct access to China's onshore financial system, including capital markets and liquidity infrastructure, which will support cross-border trade and investment flows. Deutsche Bank board member Alexander von zur Muehlen said: "It strengthens China-Europe financial connectivity."
This appointment is one of several steps by China to expand international use of the yuan and decrease reliance on a U.S. dollar-dominated global payment system. In June, China introduced new measures to encourage global adoption of the yuan. Shortly after, Standard Bank and Industrial and Commercial Bank of China were jointly designated the "Renminbi Clearing Bank of Africa," with authority to clear renminbi in 19 African countries.
Source: Investing.com
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