OREANDA-NEWS. April 18, 2014. Agricultural Bank of China (ABC) held New Silk Road International Forum on Cross-border RMB Use. ABC Executive Vice President Guo Haoda addressed the forum. Keynote speakers included Bao Mingyou, PBOC chief representative in Europe; Zhang Xuechun, PBOC chief representative in Frankfurt; Fiona Woolf Alderman, lord mayor of the city of London; Gerard Lyons, economic advisor to the mayor of London; Xiang Songzuo, ABC chief economist, as well as several senior officials and experts from the Federal Ministry of Finance, Germany, Deutsche Federal Bank, and Hessen Ministry of Economics, Transport, Urban and Regional Development. Also present at the forum were over 400 representatives from nearly 150 European banks and enterprises.

This forum was one in a series of events held by ABC in 2014 under the RMB Going Global campaign. Participants had lively discussions about hot topics such as the overall outlook of China’s macroeconomy, internationalization of the RMB, development of Europe’s RMB market, channel building for RMB recycling and RQFII.

This event stimulated the expansion of cross-border RMB use and the development of the offshore RMB market.

With a sufficient RMB fund, a wide clearing network, a sound customer base, and safe and efficient IT support, ABC has been a leader amongst its peers in RMB business. Since the early 1990s when it began providing cross-border RMB services, ABC has established a complete cross-border RMB service system that includes clearing, settlement, trade finance, treasury operations, agency investment in China’s interbank bond market, and RQFII custody. It has opened 171 clearing accounts for banks around the world and its services have reached over 100 countries and regions. In 2013, ABC handled over RMB 1.1 trillion in cross-border RMB settlements and became the first Chinese financial institution to issue RMB Formosa bonds. Furthermore, it provided agency services for other banks to invest in China’s interbank bond market and RQFII custody service.

Europe is the second largest region for cross-border RMB settlement after Asia, and a major market in ABC’s internationalization strategy. ABC has set up a subsidiary bank in London and established its first eurozone operating institution in Frankfurt. It has taken an active part in the building of an offshore RMB center in Europe, providing support for sound liquidity in the European offshore RMB market. It has also introduced a “no time difference” cross-border RMB clearing service for European customers to ensure the fast delivery of cross-border RMB remittance. As the China-Europe economic and trade ties grow and offshore RMB business develops, ABC will continue to make good use of its network and RMB fund resources, enhancing all-around cooperation with its European peers in RMB settlement, clearing, investment and financing. This will alow ABC to build a new bridge between customers in China and Europe, providing quality financial services for China-Europe economic and trade cooperation.