Source: China Daily
By WU JIAO, ZHANG CHUNYAN in Berlin, and ZHANG YUNBI in Beijing
Frankfurt offshore trading hub first of its kind in the eurozone
Beijing and Berlin agreed to launch an offshore yuan trading center on Friday as President Xi Jinping visited Germany on the third leg of his European tour.
The central banks from both countries — the Bundesbank and the People’s Bank of China — signed a Memorandum of Understanding in Berlin to allow the clearing and settlement of yuan trades in Frankfurt.
The center, in Germany’s financial capital, will be the first of its kind in the eurozone.
It forms part of a series of deals the two countries signed on Friday, which sources say could be worth billions of euros. China will also set up a consulate in Duesseldorf.
The trading center will be a “great facilitator for both China-Germany trade and China-EU trade”, said Meng Hong, an expert on Germany at Renmin University of China.