MNB inks pact with Bank of China on clearing RMB

Initiatives

The National Bank of Hungary (MNB) on Saturday said it signed a memorandum of understanding with the Peopleʼs Bank of China (PBC) on the establishment of renminbi clearing arrangements in Hungary.

The MNB also signed an agency agreement for the PBC to manage its investments on Chinaʼs interbank bond market.

The PBC decided to extend the pilot scheme of RMB Qualified Foreign Institutional Investors (RQFII) to Hungary with a total investment quota of 50 bln yuan, the MNB said. A RMB clearing bank will be designated in Hungary at a later date by the PBC, it added.

By signing the MoU on RMB clearing arrangements, the PBC and the MNB agreed to coordinate and cooperate on supervision and oversight of the RMB business, information exchange, and assessment and improvement of the system, the central bank said.

The agreements and the extension of the RQFII scheme to Hungary will promote the implementation of the MNBʼs Renminbi Program by supporting the use of RMB in cross-border transactions by enterprises and financial institutions in China and Hungary, and further facilitating bilateral trade and investment liberalization, it added.

In February, the MNB launched a Renminbi Program, in light of the increasing international role of the Chinese currency.

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