Deutsche Bank named clearing bank for China's renminbi

FRANKFURT — Deutsche Bank said on Monday (Aug 10) it had been named by China as a clearing bank for its currency, the renminbi, in a first for a European lender.

"Deutsche Bank will facilitate direct end-to-end processing, clearing and settlement services for cross-border RMB transactions for European financial institutions and businesses, acting as a local bridge to China's payment systems," Deutsche Bank said.

The move gives European businesses and financial institutions direct access to China's onshore financial system, including capital markets and liquidity infrastructure, streamlining cross-border trade and investment flows.

"It strengthens China-Europe financial connectivity," said Deutsche Bank board member Alexander von zur Muehlen.

It is one of many initiatives by China to internationalise the yuan, as the currency is also known, and reduce dependence on a global payment system dominated by the US dollar.

In June, China announced fresh measures to promote the global use of the yuan.

Days later, Standard Bank and Industrial and Commercial Bank of China were named jointly as the Renminbi Clearing Bank of Africa, with capacity to clear RMB in 19 African countries.

Earlier on Monday, China's central bank pledged in its five-year ‌plan to keep the yuan exchange rate basically stable and expand the use of the currency in international trade and investment.