TORONTO (Reuters) - BMO Capital Markets, the investment and corporate banking arm of Bank of Montreal Financial Group (BMO.TO), said on Tuesday that it would add trade finance booking capabilities in Hong Kong as it moves to facilitate more business in Asia.
The move comes just days after the central banks of China and Canada agreed to a currency swap worth 200 billion yuan ($32.68 billion) or C$30 billion.
Earlier this month, China’s central bank, the People’s Bank of China, also said it would create the first clearing hub in the Americas for the yuan, or renminbi, in Toronto.
The moves, which are expected to boost trade ties between the countries, are in line with Beijing’s ambition to promote the yuan to more international investors and eventually turn the “redback” into a global reserve currency.
BMO said the enhanced capabilities in Hong Kong would put it in a strong position to serve North American clients with offshore renminbi accounts, following the agreements this month between China and Canada.
Toronto-based BMO, the first Canadian bank with a wholly owned subsidiary in China, said its move would also help it to serve companies with operations in Hong Kong and financial institution clients in the region.
($1 = 6.1208 Chinese yuan)
Reporting by Euan Rocha; Editing by Lisa Von Ahn