The centre provides access to China’s onshore renminbi and foreign exchange markets to local financial institutions fostering cross-border use of the renminbi in the region. Banks are now able to expand their investment portfolios of financial services and products through the facilitation and issuance of financial instruments such as the trading of debt market products, interest rate and commodity derivative products denominated in the renminbi.

 

Qatar Central Bank (QCB) governor Abdullah bin Saoud Al Thani said: “The launch of the region’s first renminbi clearing centre in Doha creates the necessary platform to realize the full potential of Qatar’s and the region’s trade relationship with China. It will facilitate greater cross-border renminbi investment and financing by businesses, and promote greater trade and economic links between China and the region, paving the way for better financial cooperation and enhancing the pre-eminence of Qatar as the financial hub in MENA.”

 

The launch of Qatar’s renminbi centre follows the signing of the memorandum of understanding (MOU) in November 2014 with the People’s Bank of China (PBoC) by Al Thani during the official state visit of the Emir of Qatar to China.

 

In addition to this MOU, the QCB and the PBoC also signed the currency swap agreement, which laid the foundation for Qatar to become the first centre for renminbi clearing and settlement in the region. PBoC subsequently designated Industrial and Commercial Bank of China (ICBC) as the settlement bank for Qatar.

 

ICBC chairman Jiang Jianquing said: “The first renminbi clearing centre in the region will open further the gateway and opportunities for trade between China and the Middle East and Africa. Looking to the future, it will improve the ease of transactions between companies in the region and China by allowing them to settle their trade directly in renminbi, drawing increased trade through Qatar and boosting bilateral and economic collaborations between Qatar and China.”

 

In recent years, the renminbi has gained significant momentum as a trade and investment currency driven by China’s strong economic growth and the increasing adoption of the renminbi as an international currency. Trade between Qatar and China continues to increase, having more than tripled between 2008 and 2013 to about US$11.5 billion. Chinese companies have become active partners in the Qatar market, with 13 Chinese companies operating in Qatar, in addition to the 181 joint ventures with Qatari partners.