China Central Bank Names ICBC as Clearing Bank for Canadian Market
The Industrial and Commercial Bank of China Ltd. has been tasked by the Central Bank to be the clearing bank for the Chinese currency transactions in the Canadian market. The announcement was made by the People’s Bank of China just one day after both countries have reached an agreement on expanding the use of the Chinese yuan in the Canadian market.
The Industrial and Commercial Bank of China is one of the largest banks in terms of assets and is the first yuan clearing bank in North America. China has been actively promoting the greater use of the Chinese currency in the global market and investment in a recent bid help gave the yuan a much more expanded role in which eventually will make it a major reserve currency alongside the U.S. dollar and Euro.
During a visit by Canadian Prime Minister Stephen Harper in Beijing last Saturday brought an agreement on both countries in creating a currency swap line that is worth US$ 32 billion. Wherein China granted Canadian financial institutions a 50 Billion yuan quota to invest in the capital markets in China. Furthermore the Central Bank signed agreements with several countries including a 35 billion yuan swap line with Qatar to further boost financial deals with the gas rich State.