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HSBC becomes first international bank allowed to remit yuan to China

The move is one of several indications that internationalisation of the Chinese currency is picking up pace again

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HSBC says it’s the first international bank allowed to remit yuan to China. Photo: Reuters

HSBC said on Wednesday that it had helped a Chinese national remit yuan from Australia back to mainland China, the first international bank to do so since a rule change in January.

The transaction is an indication that the Chinese authorities have, albeit cautiously, expanded their drive to internationalise the yuan.

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Previously, Chinese people living overseas could only send money back to China if it were denominated in other currencies, but this was changed according to a circular from the People’s Bank of China, China’s central bank, published on 5 January.

In 2016, China was the second largest remittance recipient after India, receiving US$61 billion, according to the most recently available data from the World Bank.

“By opening up cross-border RMB transactions to individuals, China is adding new impetus to the international use of its currency,” said Helen Wong, HSBC’s Greater China chief executive in a statement, using an abbreviation for the renminbi, another name for the yuan.

In a separate move, the PBOC on Tuesday said in a statement on its website that it had appointed JP Morgan as a yuan clearing bank in the United States, the first non-Chinese bank to have such a role globally.

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