Being good at maneuvering through conflict s is always meritorious, especially when it comes to international politics. China’s government is the one who gets ahead in that. It is rather tough to keep political and economic relations under the given circumstances. However, this Asian country took advantage of them spawning even more profitable business proposals. Recently, China and Germany have agreed on the establishment of the trading center for the yuan in Frankfurt.
During the visit of President Xi Jinping to Germany, People’s Bank of China and Bundesbank signed the corresponding document. The parties stressed the importance of cooperation on clearing and settlement of payments denominated in China’s national currency.
Moreover, bilateral agreement, which was signed by Deutsche Boerse AG and Bank of China, is aimed to facilitate the Chinese issuers and Asian investors’ access to the European capital markets. By doing so, the Chinese regulator keeps its promise to “bolster liberalization of the national currency.” The paperwork is done, and it makes sense now to speed up the project implementation. Last month, the Bank of England signed on the dotted line as London has also obtained the right to settle payments in renminbi. Time will show which country will get a title of the Best Financial Center in dealing with the yuan. France is projected to join the list.
