Harper.jpg (Photo : Reuters)
To allow firms to exchange Canadian dollars to Chinese renminbi, Canadian Prime Minister Stephen Harper will soon announce the creation of a trading hub in Canada in his ongoing state visit to Beijing.
According to the Bank of International Settlements, the rise of renminbi prompted countries across the globe to want to become China's trading partner.
The turnover of the yuan, which boomed more than triple to $120 billion a day from 2010 to 2013, made China the world's largest goods trading nation.
A report from the Conference Board of Canada released this month stated that Canada's trading hub, which is the first in the West, is expected to boost export trading in China by up to C$32 billion ($28 billion) in the next 10 years.
Meanwhile, a report from the Wall Street Journal said that both countries' financial services discussed on creating the hub June last year, as there was already a rise in their trades.
Since yuan is not freely traded outside Asia, Canadian companies transacting with China need to partner with a bank based in the region to have a direct exchange of currency.
With the Canadian trading hub established, it would be easier and faster to transact between China and Canada.
The renminbi is the ninth widely traded currency in the world, and hubs for the currency already exist in 11 countries.
