The ties between China and Germany are getting stronger as both countries have signed a new partnership deal. China Construction Bank, the leading bank in China has signed a memorandum of understanding (MOU) with Germany’s largest trading venue; Deutsche Börse. The aim is to develop trade and commerce, whilst this memorandum will spearheads the process of internationalization of the Chinese currency. They are to cooperate on different number of pivotal projects, as clarified in the official press. This arrangement is aimed to strengthen Germany`s role as the financial services provider, keeping in mind their rival London.
CEO of Deutsche Börse, Reto Francioni said: “We regard this new strategic partnership agreed today with China Construction Bank as an important extension of our Asian strategy. We are delighted to bring in our Group-wide expertise and capacity to offer top-quality China-related products and services in increasingly globalised markets.”
Additionally, there will be a joint development of the renminbi offshore market in Germany, therefore enhancing the trade in Europe generally, as Germany and China strengthen trading ties.
Undoubtedly, the Chinese Yuan is one the fastest growing emerging market currencies when it comes to trading volumes. As there has been an increased trading activities between the two countries and more transacted payments in Chinese Yuan increased to 116% YoY.
Indeed, the Yuan is gaining traction as a global reserve currency. Interestingly, the Yuan has recently joined the top traded currencies according to the last BIS Triennial 2013 FX Survey.