Osborne in China: U.K. Relaxes Restrictions on Chinese Banks
George Osborne, the Chancellor of the Exchequer, has reported new progress has been made in talks between China and the U.K. during his visit to the Asian nation, Reuters reports.
According to the latest deal between the two countries, some Chinese banks will be allowed to operate in the United Kingdom without being subject to all of the usual regulations. The move is designed to bolster Chinese investment in U.K. businesses, as the banks will be allowed to operate largely under the regulations of their home country and will therefore be more likely to place money into the U.K.’s economy.
An eventual goal of Osborne’s visit is to establish the United Kingdom, and more specifically London, as the center for trading of the yuan in the western world. London already has the advantage of being a major currency exchange hub, and the Bank of England took an important step earlier this year when it became one of the first European banks to establish a currency swap line with the yuan. Trading activity involving the yuan has risen steadily over the course of the past year, and the yuan has performed remarkably well, trading today at a 20-year high, making the establishment of a hub for exchanges involving a currency a priority for those who want to bolster the U.K.’s economy.