Britain Reaches Deal to Clear Trades in Chinese
Currency
Great Britain is looking to become the world’s
leading hub for Chinese currency outside of Asia. By being able to clear trades in Chinese
currency, Britain is hoping to attract as much Chinese investment as possible
so as to get a first mover advantage on the rapidly growing Chinese
economy. Connecting themselves to the
most rapidly growing economies in the world is a major part of their economic
plan. The Bank of China has also
recently put a 2.5 billion renminbi bond in the London Stock Exchange’s
Professional Securities Market, the largest of its kind.
http://dealbook.nytimes.com/2014/03/26/britain-reaches-deal-to-clear-trades-in-chinese-currency/?_php=true&_type=blogs&ref=international&_r=0
2 comments:
I think this is an interesting and extremely proactive move for Great Britain. This is undoubtedly boost the British economy and result in increased trade and commerce. I am also interested in the outcomes for the rest of the British trade agreements, for example, will other nations that previously traded with China transition to the British since the currency trade is cleared? How greatly will this impact the British trade agreements with other European nations? Also, will other countries work to clear currencies so they too may be open to more trading opportunities?
I think the move is just as shrewd on China's end as it is for the British. Part of establishing economic hegemony ought to involve building up robust stakes in nations everywhere, which also adds to China's political clout.
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