RMB clearing centre in Qatar to strengthen China-MENA ties
Dubai: The first Renminbi (RMB) clearing centre in the Middle East region has been launched in Doha to increase financial connectivity among China, Southwest Asia and the Middle East North Africa (MENA) region.
As the first clearing centre inaugurated yesterday in the region to offer RMB clearing and settlement, it is also likely to increase opportunity to expand trade and investment between China, Qatar and the region.
“The launch of the region’s first RMB clearing centre in Doha creates the necessary platform to realise the full potential of Qatar’s and the region’s trade relationship with China.
“It will facilitate greater cross-border RMB investment and financing by businesses, and promote greater trade and economic links between China and the region, paving the way for better financial co-operation and enhancing the preeminence of Qatar as the financial hub in MENA,” said Sheikh Abdullah Bin Saoud Al Thani, Governor, Qatar Central Bank (QCB).
The centre provides access to China’s onshore RMB and foreign exchange markets to local financial institutions fostering cross-border use of the Renminbi in the region.
Sheikh Abdullah Bin Nasser Bin Khalifa Al-Thani, Prime Minister of Qatar and Minister of Interior, inaugurated the clearing centre in Doha.
The launch follows the signing of MoU in November 2014 between the People’s Bank of China (PBC) and QCB.
The QCB and the PBC also signed a Currency Swap Agreement, which laid the foundations for Qatar to become the first centre for RMB clearing and settlement in the region.
“The first RMB clearing centre in the region will open further the gateway and opportunities for trade between China and the Middle East and Africa. Looking to the future, it will improve the ease of transactions between companies in the region and China,” said Jiang Jianquing, Chairman, Industrial and Commercial Bank of China.
The RMB has gained significant momentum as a trade and investment currency in recent years driven by China’s strong economic growth and the increasing adoption of the RMB as an international currency.