The Australian Securities Exchange (ASX) and the Bank of China will deliver renminbi settlement services to Australian and Chinese financial markets by the middle of this year.
An agreement was been signed in Australia on 18 February 2014 by ASX CEO Elme Funke Kupper and the Bank of China’s country head for Australia Shanjun Hu. The Bank of China will act as the renminbi settlement bank within Australia.
Australian companies will be able to make payments to, or receive payments from Chinese businesses through the Austraclear market infrastructure using renminbi as the settlement currency in cross-border transactions.
This arrangement will also allow for a range of renminbi investment products to be developed, which will allow the Australian firms to hold on to the cash they receive and invest it without the need to convert it back to Australian dollars, if they choose to do so.