The average daily trading volume of the Chinese currency renminbi (RMB) in London in the first quarter of 2019 was more than 78 billion pounds (94.8 billion U.S. dollars), up 30 percent year-on-year, showed the 4th London RMB Business Quarterly.
The report issued Thursday by the City of London Corporation and the People’s Bank of China (PBoC) showed that nearly half of all RMB foreign exchange (FX) trading occurred in London. Meanwhile, London accounted for 44.46 percent of the total global FX transactions.
The report revealed that cross-border receipts and payments between China and Britain saw massive growth in May to over 55 billion RMB (7.8 billion dollars), up 107 percent from the same period a year earlier.
Investors continued to show demands for Dim Sum bonds. Two more of these bonds were added to London Stock Exchange in May 2019, which means “101 Dim Sum bonds are now listed on the Exchange with an outstanding value of 27.63 billion RMB (3.92 dollars),” the report said.
“This report shows yet again that London continues to dominate the RMB offshore market,” said Catherine McGuinness, the City of London policy chair.
“More importantly, it reveals that the fundamentals of London remain strong in the face of uncertainty, particularly in terms of foreign exchange,” said McGuinness.
“Few will deny that Chinese currency is set to become a more important player on the world stage, particularly through the lens of China’s Belt & Road Initiative,” she added.
“The aim of our latest report is to focus on the RMB cross-border usage along the Belt & Road countries, which could be the catalyst for RMB internationalisation in the future,” said Jin Mei Chief Representative at the PBoC Representative Office for Europe.