RMB clearing for Phl named

Bank of China Manila has been designated as clearing bank for renminbi (RMB) business in the Philippines. This follows the memorandum of understanding signed by the People’s Bank of China and the Bangko Sentral ng Pilipinas.

“A clearing bank will not only make local RMB transactions easier in support of the already existing Philippine RMB Trading Community that was launched last year, it will also boost local investments and other financial activities, further strengthening the economic relationship between the Philippines and China,” said Deng Jun, Country Head of Bank of China Manila.

As an RMB clearing bank, Bank of China Manila will enable local financial institutions to transfer RMB funds and participate in China’s foreign exchange market, security market and bond market.

It will also help local banks expand their product scope and provide better convenience for clients and investors looking to enter the Chinese financial market, increase their RMB asset holdings, or diversify their investment portfolios.

With a local clearing bank in place, RMB transactions are projected to grow as more Chinese tourists, traders, and investors, along with their Filipino counterparts, grow more confident in using the currency.

“This new facility will help drive the currency’s use for payments and investments, further promoting cross-border settlements, trade financing, project investments and loans. Ultimately, this projected surge in financial activity will foster the shared development of both countries,” Deng added.