The British pound is now listed on Shanghai foreign exchange market. The Chinese government has approved direct foreign exchange deals between the yuan and British pound. “This is a big step in strengthening economic and trade relations between China and the United Kingdom,” the People’s Bank of China said, highlighting the importance of the event. According to experts, the direct exchange operations have ushered in a new era of cooperation between the two states.
Market participants also responded positively to the news. The regulator said the direct trading will also help to lower the cost of foreign exchange transactions between China and Great Britain. The idea has been negotiated for a long time, but remained unrealized so far. Now, the British pound, along with the U.S dollar, Japanese yen, New Zealand dollar, and the Australian dollar will be directly traded in Shanghai. It is noteworthy that there were plans afoot that Chinese Premier Li Keqiang would unveil the list of measures to be done for London to become the leading western center for offshore renminbi trading. Experts said that China Construction Bank would be the clearing bank for transactions in Chinese yuan in the United Kingdom. The visit of Li Keqiang to London is expected to put some clarity into the situation.