RMB Clearing Will Advance Into Korea

　　 Ministry of Foreign Affairs According to the website, President Xi Jinping will pay a state visit to South Korea in from July 3rd to 4th, and what new possibilities will be opened up by the keen market for the financial and economic and trade systems of China and South Korea. Apart from the speculation that China and South Korea's FTA will be pushed forward, journalists will learn exclusively from those close to the central bank, and the RMB clearing mechanism will also enter Korea.

"The central bank is likely to announce the arrangement of the RMB clearing bank in Korea recently." The source told this newspaper. Who has won the competition in the "South Korean station" competition among the Bank of China, the ICBC and the Bank of China, which has a strong competitive power in clearing banks all over the world?

According to introduction, Central Bank The clearing bank pays more attention to the preparation of bank's liquidation capacity, the degree of network completion and the familiarity with the financial management laws and policies of both places. All of the above industries enjoy word of mouth in overseas markets, and they also have the ability to lead the industry in cross-border settlement software and hardware.

What is the necessity of RMB clearing into Korea? From the data point of view, according to the statistics of the Bank of Korea (ROK), as of the end of 5 this year, the balance of RMB deposits in the Korean banking system reached about 70 billion yuan. What is the concept? In contrast to the Taiwan region of China, the balance of RMB deposits in Taiwan was less than 50 billion yuan before the RMB clearing mechanism started in Taiwan last February. After a year after the liquidation mechanism was launched, the balance of RMB deposits in Taiwan increased by 3 times, breaking 200 billion yuan.

The Republic of Korea Bank The system has 70 billion yuan, though not as early as China's Hongkong, Taiwan or Singapore, which has launched the clearing mechanism. However, the RMB has become the second largest foreign currency deposit in Korea after the US dollar. It is worth noting that in April this year, the Korean government put forward the intention of building RMB offshore trading center, and the market demand for RMB settlement, liquidation, credit and capital transactions also gradually increased.

According to media reports, not long ago, the Seoul branch of ICBC (601398, stock bar) also launched a large amount of negotiable certificates of deposit in the Korean market, which has now issued a total of about 1 billion 600 million yuan. The issuance of such certificates of deposit is like an attempt to detect South Korean investors' attitude towards the renminbi. The success of the issuance or part of the Korean investor's preference for the renminbi at this stage is partly explained.