NEW YORK, Feb. 14 (Xinhua) -- Authorizing J.P. Morgan Chase Bank to provide RMB clearing services in the United States is a significant step forward in the internationalization of the currency, experts have said.
The decision was made to implement the results of the eighth round of the China-U.S. Strategic and Economic Dialogue and in accordance with a memorandum of cooperation signed between the People's Bank of China (PBOC) and the U.S. Federal Reserve Board, said the PBOC in a statement on Tuesday.
"(The) announcement will support the introduction of more RMB products and services in the United States, improving the competitiveness and efficiency of U.S. businesses by lowering trading costs and increasing access to China's capital markets," said Michael Bloomberg, chair of the Working Group on U.S. RMB Trading and Clearing. ' "The announcement underscores China's commitment to opening its markets, offering investors and corporations an unprecedented choice for trading, clearing and settling the RMB," said Mary Schapiro, vice-chair of The Working Group on U.S. RMB Trading and Clearing.
"The designation of two clearing banks in a market as expansive and deep as the United States' will further the internationalization of the RMB around the globe," said Schapiro.
Bank of China's New York branch has already started conducting RMB clearing services in the United States.