Bank of China is reportedly set to hire nearly 20 people in Frankfurt in a bid to clear payments in the Chinese currency.
According to Bloomberg, the bank will also increasing equity by CNY1 billion (US$160 million).
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"The globalization of the renminbi is a great opportunity for Chinese banks," Li Guang, the lender’s head in the German city was quoted as saying by the publication.
"Just look at the success of American banks, which is also partly based on the international dominance of the dollar," Guang added.
The appointment of a clearing bank is the next step in Frankfurt’s goal to become a leading offshore yuan hub after the Bundesbank and the People’s Bank of China agreed March 28 to cooperate in the clearing and settling of the Chinese currency in Germany’s financial capital.
"We are pro-actively preparing and striving to become the renminbi-clearing bank in Frankfurt," Guang said. Being granted approval to clear transactions "increases your influence and position in the market," he said, adding that the final decision will be made by the PBOC, the Asian nation’s central bank.
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