The Chinese currency renminbi soon will be convertible into Swiss francs. The necessary administrative hurdles have been removed for a closer collaboration between the People's Republic and the Swiss banking industry.
As soon as tomorrow Tuesday, China will allow the direct exchange between renminbi and Swiss franc on the interbank foreign exchange market, Swiss news agency «AWP» reported, citing the Chinese central bank.
The step will bolster trade and investments between the two economies and reduce the costs for the exchange of currencies. In mid-October, finews.ch reported about the intent of the central bank of China to remove the final hurdles for the forex trade between the two countries.
Making Life Easier for Business
With the decision, China once more underlined the opening of its currency. The Swiss financial market hopes to grab a share of the market involving the renminbi, a trade that otherwise mostly takes place in London.
The introduction of a trading hub for the Chinese currency is now only a step away. With the hub, the country would have a platform for the transaction of trade in renminbi, which till today isn't freely convertible. Countless business transactions would become easier for exporters and importers alike, while the financial industry could develop and trade new financial products.
Cooperation Time
The Swiss National Bank and the central bank of China at the beginning of 2015 decided to cooperate in the foreign exchange of renminbi. At the end of October the China Construction Bank (CCB) received the necessary banking licence as finews.ch reported exclusively at the time.
The foreign exchange between the two countries will be processed via the CCB.
