Osborne agrees deal for UK as renminbi hub

CHANCELLOR George Osborne agreed to develop London into an offshore trading centre for China’s renminbi currency after meeting Chinese vice-president Wang Qishan yesterday.

The move gave official Treasury support for the City’s push to trade the renminbi, a market expected to grow rapidly for trade, foreign exchange and bond issuance.

The step reflects efforts by Chinese authorities to push on with a series of initiatives to internationalise the renminbi, and should reinforce London’s position as a global currency hub.

“We discussed the strong private-sector interest in developing the offshore RMB market in London. We will work together to support the market’s further development,” Osborne said.

“In particular, we agreed to collaborate on the development of RMB-denominated financial products and services in London and our regulators stand ready to support this growing market.”

Osborne said the UK and China’s technical cooperation on financial services was “unrivalled”.

“No other country has the same level of integration with China as the UK. And these links are continuing to grow,” he said.