Working Group backs RMB trading and clearing in the US

The Industrial and Commercial Bank of China (ICBC) has issued its first RMB-denominated certificate of deposit (CD) in the US, with the backing of a working group.

Chaired by Michael Bloomberg and backed by the DTCC and BNY Mellon the working group on US RMB Trading and Clearing is aiming to develop the RMB markets in the US.

ICBC's New York Branch issued the RMB-denominated certificate of deposit, with the working group claiming the move will ‘further strengthen the financial cooperation between the two countries’.

“The launch represents a significant milestone in serving to meet the growing demands among investors in the United States and around the world to have access to the RMB,” said ICBC chairman Jiang Jianqing.

“The RMB is an increasingly important part of the global payments system, as payments in this currency are growing faster than overall global payments in all currencies.”

The value of RMB payments increased 18.46 percent from February 2016 to March 2016, compared with a 10.67 percent increase in all payments currencies during the same period, according to SWIFT. 

In March, SWIFT reported that the RMB was the fifth most active currency for global payments by value with a share of 1.88 percent, a slight increase from 1.74 percent in February 2016.