China will support U.K. banks’ moves to change the City of London into an offshore trading centre for the renminbi, Financial Times reports. The move will pave the way for global investors seeking currency diversification and more exposure to China to trade the yuan, as London is a major foreign exchange trading centre.
As per U.K. officials, the relaxed rules on the use of renminbi in international transactions means 7 percent of Chinese external trades will now be settled in their national currency. The figure was 1 percent a year ago. U.K. and China will also sign a memorandum of understanding on infrastructure cooperation that will increase the possibility of Chinese investment in U.K. projects.
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