The Bank of China officially opened its national headquarters for yuan operation in Shanghai yesterday to support the city’s goal of becoming a trading center of the Chinese currency.
China is working hard to make its currency market attractive and competitive on the global level. Lately China’s financial futures exchange announced that it is looking to expand derivatives trading while the Chinese Premier Wen Jiabao has stated more than once that the he wants to fast track the dilemmas the Yuan faces owing to restricted market flows on and off shore.
“The inauguration of Bank of China’s yuan trading headquarters has a strategic importance of promoting Shanghai as a global center in yuan trading, pricing and clearing by 2015,” said Shanghai Mayor Han Zheng at a ceremony marking the occasion.
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Xiao Gang, Bank of China’s chairman, said setting up the yuan trading headquarters is an important step in the bank’s restructuring and cross-border development.
The headquarters in the Pudong New Area offers yuan trading, financial institutions and cross-border yuan settlement services. A source at the Bank of China told Shanghai Daily yesterday that the bank got approval from China’s banking regulator a few days ago.
Shanghai aims to be the global center of yuan trading, pricing and clearing by 2015 as part of its 12th Five-Year Plan, which is a major step toward becoming a global financial center by 2020.