Pretoria - The South African Reserve Bank (SARB) has signed a Memorandum of Understanding (MoU) with the People’s Bank of China for the purposes of clearing and settlement of Renminbi in South Africa.
The Renminbi is the currency of the People’s Republic of China.
“Both central banks agreed to coordinate and cooperate on the supervision, oversight and clearing of Renminbi in South Africa and also to exchange information in order to facilitate the continuous improvement and development of bi-lateral trade,” said the Reserve Bank on Tuesday.
According to the SARB, the MoU signifies another important milestone reached in the continuous joint effort to build capabilities in the South African financial markets to better serve bilateral trade, investment and financial flows between China and South Africa.
China has become South Africa’s largest export partner and consequently, Renminbi clearing in South Africa will be immensely valuable as corporates will benefit greatly from trading and settling in Renminbi.
Opening a clearing centre in South Africa should boost trading in the Rand/Renminbi, which could make it easier and cheaper to trade in goods and services with China. – SAnews.gov.za
