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Ready for the Renminbi?

China has always had a unique relationship with the so-called Western world especially when it comes matters of trading and economics. What was initially an effort to benefit from the lucrative trade along the Silk Road has now evolved into a quest by Britain's Chancellor of the Exchequer George Osborne to ensure that the Chinese Renminbi finds its rightful place in the financial capital of the world as currently its the ninth most traded international currency.

Perhaps it was after losing business to Luxembourg where laws are less stringent, and perhaps it has something to do with the fact that China is allowing British investors to invest $13.1 billion in China's heavily restricted capital markets.  Chinese companies are becoming bigger players in infrastructure within Britain including an interest in Manchester airport and a 30% interest in Britain's Hinkley nuclear project. 

The British government is now offering express processing of visas for Chinese business travelers that will have a 24 hour turnaround period.
Additionally Chinese based banks will be allowed to setup wholesale banking branches in London which will hopefully increase Chinese investment in the UK as wholesale banks cater to large corporations and financial institutions.

London and Beijing are also allowing the yuan to be traded directly against the sterling effectively bypassing the dollar and decreasing transaction costs.

All signs point to China vying for strongest currency position in the global economy.

Source: CME Group