The Sydney division of Bank of China is reportedly set to bag regulatory approval for starting clearing trades in Chinese yuan.
Following the approval, Australia will join Hong Kong, Singapore, London, Frankfurt, Taipei and Seoul as offshore centres that have secured yuan clearing bank status.
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The central banks of the two countries were engaged in talks on ways to boost yuan liquidity in Australia, Elmer Funke Kupper, the chief executive of Australian’s securities exchange, told the South China Morning Post.
Kupper added that it would be a "crime" to miss out on the opportunity to grow yuan business in Sydney given that China was Australia’s largest trading partner.
"The [yuan] in Australia is small because the companies are not well connected, and we are fixing that now," he said. "It is also because there is no [yuan] liquidity as there is no clearing bank.
"We are very hopeful that they will do that very soon, in the next few months."
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