FRANKFURT, July 2 (Xinhua) -- Chinese financial institutions are ambassadors of China's financial system in the process of renminbi (RMB) internationalization, a German central bank official has said.
"Institutions like Bank of China, for me they are the ambassadors of the Chinese financial system to the world, to Europe, to Germany and also to Frankfurt," said Jochen Metzger, director general of payments and settlement systems at the Deutsche Bundesbank, in a recent interview with Xinhua.
In June 2014, Bank of China Frankfurt Branch was designated to be an RMB clearing bank, which Metzger described as "a good start."
He also noted the importance of the China Europe International Exchange (CEINEX). "The CEINEX cooperation between Shanghai and Deutsche Borse really brings another quality to Frankfurt as an RMB hub and as a clearing center," Metzger said.
The Deutsche Borse Group is a German marketplace organizer for the trading of shares and other securities.
Renminbi first broke into the top five most used currencies in 2016. In 2017, the Bundesbank decided to invest in RMB as part of its currency reserves, which Metzger said "is part of a long-term diversification strategy and reflects the increased strength and important role that Chinese economy is playing on a global scale."
"And it's a reflection of the increased international importance of RMB as an investment and reserve currency," he added.
Frankfurt is the seat of not only the German central bank, but also the European Central Bank and other institutions. Since Bank of China established its branch office in Frankfurt 30 years ago, which becomes the first Chinese financial institution in Germany, the city has been a witness of the process of renminbi internationalization.
According to the latest data from global financial transaction agency SWIFT, the RMB payment in German market in May has exceeded 585 billion yuan (about 85 billion U.S. dollars).
Metzger said Frankfurt financial market is very open and welcoming to players from all over the world. "Chinese banks can play a critical role here, they are very welcome to add their expertise to this," he said.
He also applauded new developments in China's opening-up policy. "You need this opening-up policy to continue to foster not only Sino-German relationship but financial relationships across the globe," he said.