Industrial and Commercial Bank of China (ICBC) has received approval from National Bank of Cambodia to work as yuan clearing bank in the country.
The approval is anticipated to boost the internationalization process of Chinese currency yuan, while expanding China’s offshore yuan business beyond Hong Kong, where over 80% of yuan trade settlement transactions are managed, reports the Reuters.
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ICBC’s branch in Phnom Penh will offer yuan clearing services, including renminbi account management, interbank clearing, cross-border clearing and liquidity support.
Besides Cambodia, Singapore and Laos have also approved ICBC as a yuan clearing bank.
