Beijing, February 13, 2018 – China’s central bank on Tuesday named JPMorgan Chase & Co. as yuan clearing bank in the United States, as Chinese authorities seek to boost global use of the yuan.
The pick of the largest U.S. bank by assets was made according to an agreement with the U.S. Federal Reserve, the People’s Bank of China said in a short statement on its website.
Senior Chinese and U.S. officials agreed to facilitate yuan trading and clearing in the U.S. during a bilateral Strategic and Economic Dialogue in 2016.
China and the U.S. would each pick a yuan-clearing bank in the United States, Chinese officials have said.
In September 2016, the central bank named Bank of China’s New York branch to be a yuan clearing bank in the United States.
There are some signs of a revival in the international use of the yuan after several years in the doldrums, as the yuan CNY=CFXS rebounds.
China’s non-financial outbound direct investment rose nearly 40 percent in January from a year earlier, data showed on Tuesday, in the latest sign that Beijing may be slowly relaxing tough foreign exchange controls as the government grows less worried about capital flight. – Reuters