Clearing facility to support London's renminbi business

London's new renminbi clearing facility will make it easier for businesses and investors to use the Chinese currency, and it will also support the city's role as an offshore yuan center, said Michael Vrontamitis, head of product management at the transaction banking unit of Standard Chartered Plc.

The benefits of the facility include same-day clearing for London transactions, the ability to clear transactions without being affected by Chinese public holidays and clearing under the laws of the United Kingdom.

The facility is being jointly established by Standard Chartered and Agricultural Bank of China Ltd. It was announced last week during Prime Minister David Cameron's visit to China.