London soon will play a more important role in the offshore yuan market. That's as the Bank of England and the People's Bank of China sign an agreement on renminbi clearing and settlement in London on Monday.
The memo of understanding paves the way to assigning a renminbi clearing bank in London and establishing the first yuan clearing agreement outside of Asia.
The UK has been trying over the past three years to make London a leading renminbi trade center. China and the UK signed a 200-billion-yuan bilateral currency swap agreement last June.
Four months later, London won a 80-billion-yuan RQFII quota that lets British investors invest in Chinese securities. The British Treasury also says that the clearing agreement could create more investment and job opportunities in the future.