By Satish Kanady
DOHA: The Qatar Renminbi Centre (QRC) has handled more than RMB 303bn ($47bn) worth of transactions during the first year of its operations in Doha. The currency transaction centre celebrated its first anniversary yesterday.
The QRC is the first clearing centre in the MENA region to offer RMB clearing and settlement services and opens the door to China’s onshore RMB and foreign exchange markets to local financial institutions, fostering cross-border use of the currency in Qatar and the Arab World.
In one year, the QRC has already established itself as the third largest currency clearing facility operated by the Industrial & Commercial Bank of China (ICBC). A number of banks in Qatar already opened an account with ICBC, which was designated as the settlement bank for the QRC and are expanding their portfolio of products.
Qatar National Bank, Commercial Bank of Qatar, Qatar Islamic Bank, International Bank of Qatar (Q.S.C) and Saudi Hollandi Bank have RMB accounts open with ICBC and are able to offer an expanded portfolio of RMB denominated products and transactions to their customers.
Robin Wei, QRC Head of RMB business, said QRC would encourage more banks to join it. “We are proud of what we have accomplished within a short period of time with the Qatar RMB Centre. We work hand-in-hand with financial institutions to help them develop their RMB portfolio and make trading directly in RMB simpler and faster. Local investors have showed a strong appetite for RMB financial products and remain confident in the China market over the long term. The QRC is open to all local and regional banks to help them seize future opportunities arising from China’s economic opportunities”.
In November 2015, the International Monetary Fund approved reserve-currency status for the Chinese renminbi, paving the way for broader use of the renminbi in trade and finance. The QRC is instrumental in positioning Doha as the first and leading RMB clearing centre in the MENA region and to strengthen trade relations between China and Qatar. Qatar is now the largest exporter of natural gas to China, meeting around 20 percent of Chinese energy demands.
The bilateral trade volume between Qatar and China has increased from $400m (QR1.46bn) in 2004 to $10.6bn (about QR38.6bn) in 2014.. Also, it is forecasted that by 2020, the largest share of GCC exports will go to China, at around $160bn.
While China is taking strong initiatives under the Silk Road Economic Belt, the QRC is set to tremendously strengthen financial ties between Beijing and the Middle East, allowing Qatar to fully benefit from the internationalization of the RMB. The Peninsula
By Satish Kanady
DOHA: The Qatar Renminbi Centre (QRC) has handled more than RMB 303bn ($47bn) worth of transactions during the first year of its operations in Doha. The currency transaction centre celebrated its first anniversary yesterday.
The QRC is the first clearing centre in the MENA region to offer RMB clearing and settlement services and opens the door to China’s onshore RMB and foreign exchange markets to local financial institutions, fostering cross-border use of the currency in Qatar and the Arab World.
In one year, the QRC has already established itself as the third largest currency clearing facility operated by the Industrial & Commercial Bank of China (ICBC). A number of banks in Qatar already opened an account with ICBC, which was designated as the settlement bank for the QRC and are expanding their portfolio of products.
Qatar National Bank, Commercial Bank of Qatar, Qatar Islamic Bank, International Bank of Qatar (Q.S.C) and Saudi Hollandi Bank have RMB accounts open with ICBC and are able to offer an expanded portfolio of RMB denominated products and transactions to their customers.
Robin Wei, QRC Head of RMB business, said QRC would encourage more banks to join it. “We are proud of what we have accomplished within a short period of time with the Qatar RMB Centre. We work hand-in-hand with financial institutions to help them develop their RMB portfolio and make trading directly in RMB simpler and faster. Local investors have showed a strong appetite for RMB financial products and remain confident in the China market over the long term. The QRC is open to all local and regional banks to help them seize future opportunities arising from China’s economic opportunities”.
In November 2015, the International Monetary Fund approved reserve-currency status for the Chinese renminbi, paving the way for broader use of the renminbi in trade and finance. The QRC is instrumental in positioning Doha as the first and leading RMB clearing centre in the MENA region and to strengthen trade relations between China and Qatar. Qatar is now the largest exporter of natural gas to China, meeting around 20 percent of Chinese energy demands.
The bilateral trade volume between Qatar and China has increased from $400m (QR1.46bn) in 2004 to $10.6bn (about QR38.6bn) in 2014.. Also, it is forecasted that by 2020, the largest share of GCC exports will go to China, at around $160bn.
While China is taking strong initiatives under the Silk Road Economic Belt, the QRC is set to tremendously strengthen financial ties between Beijing and the Middle East, allowing Qatar to fully benefit from the internationalization of the RMB. The Peninsula
