Canadian RMB Settlement Hub Officially Launched

VANCOUVER, British Columbia - March 23, 2015 - PRLog -- As of today, it will be easier for Canadian companies to do business with China. AdvantageBC (http://advantagebc.ca/) is celebrating today’s launch of the Canadian Renminbi (RMB) Settlement Hub by the Industrial and Commercial Bank of China.

As part of the opening celebration, AdvantageBC and the Toronto Financial Services Alliance (TFSA) are co-hosting a panel discussion to explore the opportunities that the new hub will bring. The panel also includes representatives from the Industrial and Commercial Bank of China, BMO Capital Markets and Export Development Canada.

“This new currency exchange system will mean that Canadian companies will now be able to efficiently conduct transactions in real time between Canadian dollars and the Chinese renminbi,” says Colin Hansen, President and CEO of AdvantageBC. “It will mean savings in currency exchange costs, reduction in transaction risks as well as faster and more direct payments.”

“There is no question that British Columbia companies will benefit from this direct pipeline,” he added.

The BC Provincial Government has been a leader in promoting the international use of the RMB for several years. In October, 2013 they became the first government outside of China to issue a RMB denominated bond (known as a Dim Sum Bond) in the amount of RMB 2.5 billion.  This was followed by a second, larger issuance in November, 2014 in the amount of RMB 3.0 billion.

At the request of the Provincial Government, AdvantageBC led a BC private sector effort to have Canada designated as the first jurisdiction in the Americas to be allowed to establish a RMB Settlement Hub. In the summer of 2014 AdvantageBC and the Toronto Financial Services Alliance announced that they would be working collaboratively to promote a “Pan-Canadian” model rather than one that designated a single city.

That objective was met last November 2014 by the Chinese government, when they announced the establishment of a Canadian settlement hub and, in doing so, stated clearly that this would be a settlement hub to serve all of North America.

“All Canadian financial institutions will be able to access this currency exchange mechanism,” said Hansen. “Given the stellar global reputation of the Canadian banking system, we are well positioned to offer this service to companies throughout the Americas.”

“We are in an age of 24/7 commerce. The end of the business day in East Asia overlaps with the start of the business day in Europe.  The Eastern Canada time zone allows for Toronto and Montreal to take over currency processing activities from Europe-based institutions and Vancouver can benefit from its location in the Pacific time zone which overlaps with Asia.  Canada becomes the missing link in that continuum and can facilitate same-day currency settlement”

The official launch also coincides with the announcement that AdvantageBC and the Province of BC will be co-hosting a “Pacific Finance Summit” in Vancouver on June 16, 2015 that will spotlight the opportunities that the Canadian RMB Settlement Hub will bring to companies and financial institutions throughout the Americas.