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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
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