London seeks more offshore yuan volume
THE recent weakening of the yuan will not deter its internationalization as London is ready to handle a greater volume of cross-border yuan business, a City of London official said on the sidelines of the Lujiazui Forum.
“Yuan internationalization implies that the currency respond to market movements,” said Mark Boleat, chairman of policy and resources committee of the City of London.
“This will not lead to reduction in the use of yuan. Our main concern in developing the market has always been facilitating financing of trade, rather than long-term investments. What is needed there is simply liquidity of the market.”
Boleat, the main person tasked with building London into an offshore yuan center since 2012, said the work has been basically completed and the British capital is well prepared to embrace more cross-border activities such as issuance of yuan-denominated bonds and a connect with the Shanghai Stock Exchange.
“We probably have done everything that needs to be done in terms of having the necessary market infrastructure,” said Boleat.
“But there is still scope to significantly increase the volume of business, and that will happen as companies get used to dealing in the yuan.”