Several major banks are backing an initiative that could see London become a Western hotspot for yuan investment and trade.
That is according to a new policy paper released today (18 April) by Bourse Consult, which has stated that financiers such as Barclays, Standard Chartered, HSBC, Deutsche Bank and the Bank of China are all in support of this move, Bloomberg reports.
At present, UK institutions hold around $17 billion worth of interbank and customer deposits in the renminbi and chancellor George Osborne is eager for this figure to expand further.
This forms part of the government's plan to forge closer economic ties with the world's second-largest economic power and Bourse Consult has indicated the bank holdings are "growing strongly".
Stuart Fraser, head of the organization's sterling committee and City of London Corporation's policy chairman, said the UK capital is "perfectly positioned" to act as a yuan hub.
"London has many natural advantages, including time zone [and] a trusted legal system," he noted.
By Gary Cooper