The People's Bank of China has designated Deutsche Bank as a renminbi clearing institution in Frankfurt, marking the first time a European lender has received such authorization from Beijing.
The German bank will provide end-to-end processing, clearing and settlement for cross-border yuan transactions on behalf of European financial institutions and businesses. Alexander von zur Muehlen, Deutsche Bank's CEO for Asia-Pacific, Europe, the Middle East, Africa and Germany, said the move would strengthen Frankfurt's position as an international financial centre. Deutsche Bank was among the first international lenders to join CIPS, China's alternative to SWIFT launched in 2015.
The appointment forms part of broader efforts by Beijing to internationalise the yuan. In late June, the central bank announced measures including allowing offshore renminbi lending backed by Chinese bonds and designated South Africa's Standard Bank as Africa's first yuan clearing bank. The renminbi currently accounts for just 3.1% of global payments, compared with the US dollar's 50.1%, according to SWIFT data.