JPMorgan Will be the 1st US RMB Clearing Bank

Forex News

The People's Bank of China chose JPMorgan Chase Bank N.A. to conduct clearing operations in RMB in the United States. Thus, the largest US bank will become the first clearing partner of the Chinese central bank outside of China.

The decision that China and the US will be appointed by the clearing bank for yuan transactions in the US market was made in the framework of the bilateral dialogue as early as 2016. Then the Chinese central bank chose the New York branch of one of the Chinese state-owned banks - Bank of China.

There are some signs of a revival in the international use of the yuan after several years in the doldrums, as the yuan strengthens. But still, despite Beijing's desire to raise the international role of the yuan, its share in international payments has been steadily declining for the past two years. SWIFT data show that it was 1.54% in December 2017, compared to a record 2.79% in August 2015.