Major banks granted AUD/CNY licence
Westpac Institutional Bank has received approval from The People’s Bank of China to act as a market maker for the direct trading of Australia dollar/Chinese yuan on the China foreign exchange trading sysem.
ANZ said on Tuesday that it had also been granted approval to act as market maker in the currency pair. HSBC China has also received approval to be one of the first market makers, it said on Wednesday.
The approvals follow Prime Minister Julia Gillard’s announcement in Shanghai on Monday that Australia and China had entered an agreement to trade directly between their two currencies.
Prior to the agreement, the US dollar and Japanese yen were the only two currencies to be directly traded on the Chinese mainland.
Westpac said it was invited to apply for the market maker licence because of its local experience and capability. It has extensive renminbi (RMB) capability, currency dealers in Shanghai and branches in Beijing, Shanghai and Hong Kong.
The license will reinforce Westpac’s strategy in Asia “which is built on supporting our customers as they take part in the increasing trade and investment flows in this region,” said Gail Kelly, chief executive officer of Westpac Group
Mike Smith, ANZ’s chief executive officer, said the new licence will help offer direct settlement to customers in both markets.
ANZ is the only Australian bank to be locally incorporated. It has branches in five Chinese cities and also owns a rural bank in Liangping County.
HSBC was among the first banks appointed as market makers for RMB-yen direct trading.
- Capital Markets
- Westpac Institutional Bank, The People’s Bank of China, HSBC China, ANZ,
- Marion Williams, email@example.com
- Article Posted:
- April 11, 2013
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