“Frankfurt is one of Europe foremost financial centers and home to two central banks, making it a particularly stable location. Renminbi clearing will strengthen the close economic and financial ties between Germany and the People Republic of China. The growing trade and investment relations between Germany and China will make the volumes of payment in RMB continue to rise. German Bundesbank supports the development of a yuan-clearing solution in Frankfurt, said Joachim Nagel, member of Bundesbank executive board.
As Germany third-largest foreign trading partner, bilateral trade between China and Germany reached 140 billion euros last year (US$192 billion) according to Germany Federal Statistics Office. China additionally ranked as the fifth-largest importer of German goods and second-largest exporter to Germany.
Along with the currency clearing MoU, Deutsche Boerse AG, which operates the Frankfurt stock exchange, signed a separate agreement with the People Bank of China that will facilitate Chinese issuers and investors access to European capital markets and stock listings.
