FX.co ★ First deals in yuan

In Frankfurt, the first deals in the yuan were held. Bank of China, officially delegated by the People's Bank of China to provide clearing services, began to settle the first payments using the Chinese national currency. Such services are popular. During the first day, a few German banks, including major financial institutions, opened accounts in Frankfurt-based Bank of China. It is worth noting that a special group worked on the creation of appropriate infrastructure projecting the potential of transactions in the yuan in the eurozone. Frankfurt became the first European financial hub which gained the right to conduct operations in the yuan. The authorities of China and Germany concluded a bilateral agreement on establishing the processing centre working with the yuan in March of the current year. During the official visit of President Xi Jinping, the necessary documents were signed by representatives of the Bundesbank and the People's Bank of China. Due to agreements reached, the German banks and their clients can get direct access to the yuan; while they will not be charged extra costs of conversion according to the old scheme of euro-U.S. dollar-yuan. China is gradually reducing the state control over pricing of the currency exchange rate. Besides, China makes every effort to make the yuan become a global trading currency. The government opens settlement centers in major cities around the world, actively concludes swap agreements with different countries, and helps international companies to place bonds in the yuan. Another step in this regard was made in China. Investors got the opportunity to gain access to the largest China's stock market and vice versa. Thus, China is on the way to open up their market for international investors.