Bank of China Manila was named on Wednesday as the clearing bank for renminbi business in the Philippines, following the memorandum of understanding signed by the People’s Bank of China and the Bangko Sentral ng Pilipinas.
Deng Jun, country head of Bank of China Manila, said the development would not only make local RMB transactions easier in support of the already existing Philippine RMB trading community but also boost local investments and other financial activities, further strengthening the economic relationship between Manila and Beijing.
As a clearing bank, Bank of China Manila will enable local financial institutions to transfer RMB funds and participate in China’s foreign exchange market, security market and bond market.
It will also help local banks expand their product scope and provide better convenience for clients and investors looking to enter the Chinese financial market, increase their RMB asset holdings or diversify their investment portfolios.
“This new facility will help drive the currency’s use for payments and investments, further promoting cross-border settlements, trade financing, project investments, and loans. Ultimately, this projected surge in financial activity will foster the shared development of both countries,” Deng said.