ICBC to clear RMB business in Toronto

BEIJING -- China's central bank on Sunday appointed the Industrial and Commercial Bank of China (ICBC) to clear transactions involving the country's currency, the Renminbi or yuan, in Canada's financial hub of Toronto.

According to a memorandum of understanding (MoU) between the two central banks, the People's Bank of China (PBOC) decided to authorize the Canadian branch of ICBC to clear yuan transactions in Toronto, the PBOC said in a statement on its website.

The PBOC signed the MoU with the Bank of Canada on Saturday, in which the Canadian central bank promised to support the establishment of a Renminbi clearing bank in Canada.

Also on Saturday, the two central banks signed a currency swap deal worth 200 billion yuan or $C30 billion.

Chinese Premier Li Keqiang, in talks with visiting Canadian Prime Minister Stephen Harper on Saturday, called on the two sides to push forward the establishment of the Renminbi offshore trading center in Toronto and support banks to do business in each other's countries.

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