Chinese name Switzerland a renminbi hub

China‘s and Switzerland’s central banks have signed an agreement to make Zurich the newest hub for trading the renminbi currency (RMB). Switzerland will receive a quota of RMB50 billion (CHF7 billion) to establish itself as a so-called RMB Qualified Foreign Institutional Investor, or RQFII, according to an announcement from the Swiss National Bank (SNB). Switzerland’s status as a “renminbi hub“ will give Swiss commercial traders the ability to make and clear direct trades with their Chinese counterparts in China. The agreement suggests that a Chinese commercial bank may also establish itself in Switzerland in the coming months, since such a presence is necessary for renminbi clearing arrangements to take place. The SNB called the agreement, which was reached on the sidelines of the World Economic Forum’s annual meeting in Davos, "a sign of fresh progress in bilateral financial cooperation between China and Switzerland“. In July of last year, the SNB and the ...