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![Bank Of China became the RMB clearing bank in Frankfurt and Paris while China Construction Bank was authorized to be the RMB clearing bank in London [Xinhua]](http://thebricspost.com/wp-content/uploads/2015/07/yuanSA.jpg)
Bank Of China became the RMB clearing bank in Frankfurt and Paris while China Construction Bank was authorized to be the RMB clearing bank in London [Xinhua]
The MOU is for the purposes of clearing and settlement of yuan in South Africa, said the South African Reserve Bank (SARB). Beijing is keen on substituting the US dollar with the yuan in all of China’s trade with other countries.
“Both central banks agreed to coordinate and cooperate on the supervision, oversight and clearing of renminbi (Chinese currency) in South Africa and also to exchange information in order to facilitate the continuous improvement and development of bilateral trade,” said Candice Jeffreys, Media Coordinator of the SARB.
“The MOU marks another important milestone through joint efforts to build capabilities in South Africa’s financial markets to better serve bilateral trade, investment and financial flows between China and South Africa,” Jeffreys said.
China and South Africa central bank governors had met in Moscow on Tuesday during a BRICS meet where they signed an operating agreement on the $100 billion monetary fund. The BRICS Contingent Reserve Arrangement (CRA) will come into force on 30 July.
China is now South Africa’s largest export partner.
The move will expand the list of countries with direct access to trade in the Chinese currency.
The Chinese currency now trades directly with the Japanese yen, the Australian dollar, the Brazilian real, the EU’s euro, the New Zealand dollar and many other currencies.
BOC became the RMB clearing bank in Frankfurt and Paris last year, while China Construction Bank was authorized to be the RMB clearing bank in London.
TBP and Agencies
