WOW Swiss and Chinese Central Banks Cut Deal for Chinese Currency Clearing (A Serious Poke at the Dollar?)

Switzerland’s central bank said today in a statement that it had agreed with the People’s Bank of China to establish clearing arrangements in Switzerland for renminbi trading and extend a pilot scheme for clients of Swiss banks.

“It will promote the use of the renminbi by enterprises and financial institutions in cross-border transactions, and promote facilitation of bilateral trade and investment,” the Swiss National Bank said.

Alongside the pact, the PBOC will extend a pilot scheme for foreign investors to clients of Swiss banks, with a quota of up to 50 billion yuan ($8 billion).

From Davos, Reuters adds:

“We are willing to make Switzerland one of the centers of offshore RMB business,” Chinese Premier Li Keqiang told the World Economic Forum.

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