Sydney growing as a global Renminbi hub

Premier Gladys Berejiklian has highlighted Sydney’s impressive growth as a global Renminbi (RMB) hub at the first RMB Global Cities Dialogue.

NSW is hosting the inaugural event, which has brought together experts from official RMB trading hubs around the world to discuss key issues surrounding the internationalisation of the Chinese currency.

In 2015 the NSW Government set a target for 20 per cent of all Australian business transactions with China to be settled directly in RMB by 2020, and Ms Berejiklian said progress is exceeding expectations.

“Already in Australia our direct payments in RMB to China and Hong Kong have risen from almost nothing a few years ago to 17 per cent of transactions in 2016,” Ms Berejiklian said.

“As the financial capital of the nation, Sydney is leading the way as an official RMB hub, which is helping ease the way for Australian companies to do business with the important Chinese market.”

RMB is the second most-used currency in global trade finance after the US dollar.

“With Sydney rising to eighth place in the Global Financial Cities Index, RMB denominated trade is a key part of what we have to offer as a globally competitive financial services centre,” Ms Berejiklian said.

The two day RMB Global Cities Dialogue is focused on the changing role of the Renminbi as a currency for trade invoicing and settlement, investment, and reserves.