By Maximilian Clarke
The UK’s treasury this morning (Monday) announced its intention to turn London into a global hub for the trade of China’s ‘people’s currency’, the renminbi.
Doing so, argues David Sear, Global Managing Director at Travelex Global Business Payments and Chief Operating Officer of Western Union Business Solutions, would mark a landmark in the liberalisation of the currency, marking a significant shift away from the dollar and therefore revolutionising the future of global trade.
“The UK Treasury’s announcement to make London the leading international hub for trading China’s currency is a ground-breaking decision in the history of renminbi internationalisation.
This new partnership with Hong Kong will make London a major global player for trading the renminbi outside of China. This is good news for the UK; the ability to trade in the renminbi will not only help UK-based SMEs to capitalise on the world’s second largest economy, but it is also a step in the right direction in terms of boosting an export-led recovery.
The liberalisation of the renminbi is a progressive move that will cause a real shift in power away from the U.S. Dollar’s status as the default global currency.
As China opens up, foreign companies will increasingly look to pay Chinese suppliers in renminbi rather than U.S. Dollars. With this in mind, we added the Chinese renminbi to our Global Clearing Network in June last year and over 15,000 of our 35,000 business customers are now able to send renminbi payments into China.
In short, this is a currency revolution on a global scale that will have a profound impact on how we conduct international business — and not just in the UK.”
Join us on