RMB is set to become a more influential player on the world stage, and it's important that London maintains its role as an offshore RMB trading hub, a top policymaker told Xinhua in an exclusive interview recently.
Catherine McGuinness, chair of the Policy and Resources committee at the City of London Corporation, said the Chinese currency has grown in importance since China's opening up more than 40 years ago.
She highlighted a big step in 2016 when the International Monetary Fund included the RMB in the Special Drawing Right (SDR) basket.
The City of London Corporation, alongside British Treasury and trade organizations, has long been at the forefront of promoting London as an offshore hub for RMB.
Two and a half years ago, the People's Bank of China Representative Office for Europe set up the RMB Market Monitoring Group, followed by launching the London RMB Business Quarterly report together with the City of London Corporation last year.
"The report aimed at cementing London's position as the leading offshore RMB trading hub outside of Asia by attracting more RMB denominated products and transactions in the City of London," said McGuinness.
In her view, the latest significant milestone for London's role as RMB hub was that China Construction Bank, the UK designated RMB clearing house, exceeded the clearing volume of 40 trillion RMB earlier this month.
Looking into the future of RMB internationalization, McGuinness expressed full confidence.
"China is the world's second-biggest economy in terms of nominal GDP," she said. "In the long run, few will deny that the RMB is set to become a more important player on the world stage."
Talking about London's position in offshore RMB trading after Brexit, McGuinness stressed the city's fundamental strength.
"The city has an exciting long-term future ahead of it, whatever comes next as the UK prepares to begin a new chapter," she said.
McGuinness emphasized the importance of London maintaining its role as an offshore RMB hub.
Noting that London has long been a world leader in foreign exchange, she said that the city has naturally become the leading hub for RMB trading.
She stressed that levels of the Chinese currency going through London far outstripped that of any other financial center.
"All of this enhances our reputation as a world-leading international financial center," she said.
