Finance
The Province of British Columbia welcomes the official launch of Canada’s offshore renminbi centre, Minister of Finance Michael de Jong announced today.
The Industrial and Commercial Bank of China has been designated the official clearing bank for Canada’s offshore renminbi (RMB). The bank will clear and settle renminbi transactions between Canada and China directly in China’s payments system.
The hub will support the increased use of RMB in trade, commerce and investment between Canada and China. For example, for B.C. firms doing business in China, using RMB can be more efficient and lead to improved trade terms that could make B.C. businesses more competitive and able to expand market share.
In June 2015, AdvantageBC and the Province of British Columbia will co-host the Pacific Finance Summit: Canada's RMB Advantage, to look at this major opportunity and outline how Canada's financial sector and business leaders can benefit from it.
In Budget 2015, the Province committed modest support to ensure that B.C. businesses are equipped to understand and use the renminbi hub. This includes working with the business community to promote the hub and its benefits, and continuing collaboration with industry and government partners.
In November 2014, the federal government announced that Canada and China agreed on measures to establish Canada as a renminbi hub for North America. British Columbia has been collaborating with the Government of Ontario, AdvantageBC, the Toronto Financial Services Alliance and the financial services industry to promote the creation of a Canadian renminbi trading hub since early 2014.
Creation of the hub recognizes the international importance of the RMB and its increasing use in international trade. Designation of Canada as an RMB trading hub plays to B.C.’s strength as the Canadian province that has the most trade with China.
In 2013, B.C. was the first foreign government to issue a bond in the renminbi market. In October 2014, B.C. issued a second bond - this time a two-year bond - into the renminbi market, raising RMB 3 billion (approximately C$559 million).
Quotes:
Minister of Finance Michael de Jong -
“Having a Canadian renminbi hub will enable B.C. businesses to take advantage of the benefits that flow from doing RMB-denominated transactions. This is an exciting opportunity for British Columbia and we are dedicated to ensuring the success of this pan-Canadian initiative.
“British Columbia is always looking for ways to strengthen our cultural, economic and financial ties to Asia. Having a Canadian renminbi hub allows us to continue to grow those ties in a meaningful way, and shows our continued commitment to maintaining a strong connection with one of our key export partners.”
Minister of International Trade Teresa Wat -
“British Columbia’s increased trading relationship with China will benefit greatly from the establishment of a Canadian renminbi trading hub. This partnership strengthens Vancouver and B.C. as the gateway for Canada-China trade and commercial activity, and makes B.C. a preferred destination for major Asian firms to invest and locate their North American presence.”
Media Contacts:
Jamie Edwardson
Communications Director
Ministry of Finance
250 356-2821
Media Relations
Ministry of International Trade
250 356-7293
