Sydney's position as a preferred RMB trading hub has been confirmed with NSW Premier Gladys Berejiklian hosting the inaugural Renminbi (RMB) Global Cities Dialogue next month.
Announced on the penultimate day of Chinese Premier Li Keqiang’s decidedly Sydney-centric tour, the New South Wales Premier said her state is now primed to become the global centre for RMB trading.
With Australia the largest investment market in Asia-Pacific valued at $2.1 trillion, Berejiklian stated her ambition for business in the Chinese currency to grow at a rate of 20 per cent of Australian merchandise trade with China by 2020.
According to the NSW government, Sydney is currently ranked in the top five global hubs based on the proportion of total trade in RMB.
“Sydney is globally renowned as a sophisticated financial centre and our city has gained a reputation worldwide for RMB trading,” Berejiklian (pictured) said.
Sydney has been a hotbed of lobbying for its elevation as an official RMB trading hub since 2014, following the formation of an RMB Working Group based in Sydney, operating with a mandate to investigate opportunities for expanding RMB trade settlement and investment.
The market-led group, with official sector observers from The Australian Treasury, Hong Kong Monetary Authority and Reserve Bank of Australia, meets periodically throughout the year, culminating in the formal and annual Dialogue.
The RMB Working Group agreed in July 2014 to develop an action plan and timeline for the launch of an Australian financial services initiative on Sydney as a centre for RMB business, resulting in the formation of the Sydney for RMB Committee, comprising government and market representatives. (see full list of participants below.)
Sydney’s Global Cities Dialogue will focus on the changing role of the Chinese yuan as a currency for trade invoicing and settlement, investment and reserves.
“This event will bring together experts from official RMB trading hubs around the world to discuss key issues surrounding the internationalisation of the Chinese currency,” Berejiklian said.
The RMB Global Cities Dialogue for 2017 will be held at NSW Parliament House on April 27 and 28.