Canada and China to Set Up Yuan Trading Hub in Canada
Canadian Prime Minister Stephen Harper will announce the establishment of a trading hub for the Chinese currency in Canada during a state visit to Beijing starting today, according to a person familiar with the matter.
The deal will allow firms to exchange Canadian dollars directly with China’s tightly controlled currency rather than having to convert them to U.S. dollars said the person, who asked not to be identified because they’re not authorized to speak publicly.
Countries around the world have been racing to be designated trading hubs for the renminbi as China’s rise to become the world’s biggest goods trading nation saw turnover in its currency more than triple to $120 billion a day between 2010 and 2013, according to the Bank of International Settlements.
Canada’s trading hub would be the first in the Americas and it is expected to increase exports to China by as much as C$32 billion ($28 billion) over the next 10 years, according to a report this month from the Conference Board of Canada.
Jason MacDonald, Harper’s director of communications who is traveling with the prime minister, couldn’t immediately be reached for comment.
Source: Bloomberg – Canada and China to Set Up Yuan Trading Hub Canada
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