China 'open' on Paris offshore RMB market

BEIJING - A senior Chinese official said here on Tuesday that China holds "an open attitude" toward the development of the Paris offshore RMB market following the conclusion of the first China-France high-level economic and financial dialogue.

Vice Finance Minister Zhu Guangyao said at a news briefing after the dialogue that Chinese and French officials discussed the Paris offshore RMB market several times during the dialogue.

"China holds an open attitude on the issue," said Zhu. "We respect the reality of the market, and we are pleased to see the development of the Paris offshore RMB market."

According to statistics from the French side, the volume of annual trade between China and France has reached $50 billion, around 20 percent of which has been settled in the Chinese currency.

"This means that some $10 billion were settled in RMB annually," Zhu noted.

He added that China would like to see Paris contribute more to the offshore RMB market amid further cooperation between the two nations in the area.

At a separate news briefing, French Finance Minister Pierre Moscovici said Paris holds a unique position in the internationalization of RMB and can play its special role in the process.

Paris has more RMB deposits than any other country in the EU, said Moscovici.

Besides, as a financial hub, Paris is a good gateway for Africa, where both France and China have interests, said the French finance minister.

He said France hopes that French banks or financial institutions can become qualified to conduct financial business in RMB.

According to a joint statement issued after the dialogue, China recognizes the active role played by Paris in promoting the cross-border use of RMB.

The two sides agree on further cooperation to help develop the Paris offshore RMB market, including the assessment of the need for and the modalities of specific clearing and settlement arrangements in Paris, said the statement.

China will also actively consider supporting Paris for its offshore RMB business development through the RMB Qualified Foreign Institutional Investor (RQFII) arrangement within a reasonable timeframe, it added.