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Clearstream bullish on offshore renminbi
25 February 2014
The ICSD is actively looking for partners to work on building the international renminbi market
Clearstream has announced it is seeking partners to help develop the international offshore renminbi market.
The international central securities depository (ICSD) said it has instigated a market approach to bringing market participants and providers together to collectively work on building the market.
The firm is already working with the trade finance industry, investment funds industry and the global securities financing industry including collateral management providers.
The work will involve developing solutions to increase offshore RMB liquidity, enhancing the depth and breadth of renminbi products and services, and facilitating both growth and maturity in the offshore RMB bond markets.
Philip Brown, head of global client relations and executive board member, Clearstream, said: “The internationalisation of the renminbi that the Chinese authorities pursue is currently one of the most exciting developments in this space that we, as a core market infrastructure provider, have been supporting since the early days.
"We have a clear vision and market approach to help take this agenda forward - together with partners from across the market we intend to contribute to the development of a truly international offshore market for the Chinese currency.”
Clearstream will explore tri-party repo solutions for increasing interbank market liquidity in renminbi, as well as cash management, bonds issuance and the development of new offshore products and services including in the funds area.
The ICSD said that although renminbi accounts for less than 9% of global trade finance volume – compared with US dollar which accounts for 81% - there is “clear growth potential” for the Chinese currency at the international level.
The company also revealed that 20% of its revenue comes from Asia.