London’s role in the global RMB market grew significantly during 2012, according to a new report published by the City of London Corporation and authored by Bourse Consult. Business volumes and the number of RMB products provided by London-based banks increased significantly, particularly for transactions in foreign exchange and trade services.
The study shows that during 2012 there was strong growth in the use of RMB by corporations following extensive marketing of RMB services by UK based banks. Import and export financing totalled ¥33.6 billion, up by 100% compared with 2011. The volume of Letters of Credit and other loan guarantees grew 13 times to ¥4.7 billion.
Strong levels of growth were observed across the institutional and interbank market. Notably there were large increases in the volumes of a full range of deliverable forex instruments, with spot RMB trading volumes increasing in total by 240% on 2011, reaching a daily average of $2.5 billion.