Deutsche Bank Clears Yuan Transactions for Chinese Clients
China's push to internationalize its currency has taken another step forward as it authorized Deutsche Bank AG as the first non-Chinese lender to settle yuan transactions in Europe.
The German bank will handle yuan clearing from Frankfurt, where it is headquartered. Previously, this processing was handled by units of Chinese banks such as the Bank of China and Industrial & Commercial Bank of China from cities including Frankfurt, London, Paris, and Budapest, as well as Luxembourg.
Leo Yin, president of Deutsche Bank China, said that European multi-nationals with significant commercial activity in China will be key drivers. Client inquiries and yuan-settlement volumes have risen in recent years, while global firms increasingly invoice directly in yuan to cut costs and improve pricing transparency with Chinese suppliers.