OREANDA-NEWS. The People’s Bank of China (PBC) resolved today to authorise Bank ICBC (JSC) (Moscow) to be the renminbi clearing bank in the Russian Federation. With this authorisation, the arrangements of Memorandum of Understanding between the Bank of Russia and the PBC on the establishment of renminbi clearing arrangements in Russia, signed on June 25th, 2016, have now been successfully implemented.

The establishment of Bank ICBC as the renminbi clearing bank is an important milestone in cooperation between China and Russia aimed at strengthening linkages between the markets of two countries. The availability of renminbi liquidity on the Russian market will facilitate renminbi transactions settlement continuity and promote the use of the renminbi in cross-border transactions between companies and financial institutions.

Furthermore, the development of a renminbi market in Russia will contribute to the standing of Russia as a regional financial hub for renminbi transactions in Eurasian Economic Union.