London, United Kingdom (PRWEB UK) 30 July 2012
While the British government recognises the importance of facilitating trade between UK-based businesses and Chinese manufacturers, London’s activity with the Yuan is still relatively limited. This is particularly true when compared to Hong Kong, who has been the main winner in China’s desire to push its currency’s international influence.
According to a report published in April by the City of London Corporation, London’s banks currently hold approximately 109 billion Yuan worth of deposits. An estimated 35 billion Yuan is said to be held in consumer accounts.
Although this is significantly less than the 554 billion Yuan that is stocked by Hong Kong bank accounts, Currencies Direct, one of Europe’s leading currency exchange providers, believes that London-based banks and businesses are taking positive steps to increase trade with China and create a pool of Yuan outside of Asia.
Currencies Direct also argue that it is important to use Yuan while trading with Chinese firms, as this will lead to new avenues and opportunities for business by increasing market transparency and removes the need for double exchange rates as there won’t be a need to do sterling to dollar and then dollar to yuan.
“It is important for financial institutions in London to stock Yuan, especially as China’s currency becomes increasingly global,” a Currencies Direct Spokesperson said. “Though it may have been difficult to pay Chinese suppliers and business partners in Yuan two or three years ago, it is now vital for the city of London to promote its financial strength and flexibility to China.”
While it makes sense for UK banks and organisations to stock Yuan, this initiative was initially pioneered by a tool company in Sheffield. Almost two years ago, Niell Tools, the little-known makers of spades, lawn rakes, and shovels, made financial history by making a cross-border payment in the Chinese currency.
So following in the success footsteps of the Sheffield-based store, London should attempt to stock more Chinese currency, and position itself as a key offshore Yuan trading centre.
About Currencies Direct
Currencies Direct is one of Europe’s leading non-bank providers of currency exchange payment services. Since its formation in 1996 Currencies Direct has evolved and positioned from being an innovative service provider of foreign exchange for consumers and high net worth individuals into a dynamic and pioneering ‘business to business’ fully integrated treasury solution service provider.
Head quartered in the City of London (United Kingdom) with operations in Europe, Africa, Asia and the United States, Currencies Direct is part of the Azibo Group, a privately owned investment company.