1. What are the continuing efforts to internationalise the
renminbi? What is the role of Luxembourg in this process?
On June 28 2014, a memorandum of understanding (MOU) on
renminbi clearing arrangements in Luxembourg was signed
between the central bank of Luxembourg (Banque centrale du
Luxembourg) (BCL) and China's central bank, the
People's Bank of China (PBOC). A renminbi clearing
bank will soon be designated in Luxembourg. This evidences a
further step in China's efforts to internationalise the
renminbi.
Currently, Luxembourg is the leading centre for
renminbi business in the euro zone. As of the first
quarter of 2014, it harbours around Rmb79.4 billion in deposits, a
24% increase from the last quarter of 2013. It currently hosts the
European headquarters of China's three leading banks, namely
Bank of China, China Construction Bank and Industrial and
Commercial Bank of China. China Merchants Bank and Agricultural
Bank of China are expected to set up in
