MONTREAL (Reuters) - The establishment of a clearing hub for the yuan in Toronto is an important development for Canada that will help accelerate increased trade with China, Canada’s Finance Minister Joe Oliver said on Monday.
“What it will do is reduce costs, increase trade, create employment and strengthen the Canada brand,” Oliver told reporters.
“Trade is continuing to increase with China and this will help accelerate that.”
Over the weekend, the central banks of China and Canada agreed to a currency swap worth 200 billion yuan ($32.67 billion) or C$30 billion.
China’s central bank, the People’s Bank of China, will also create a clearing hub for the yuan - or renminbi, as the currency is also called - in Toronto, the first such hub in the Americas.
Reporting by Allison Lampert; Writing by Leah Schnurr; Editing by Jeffrey Benkoe