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China, Germany to build yuan center

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Staff writer ▼ | March 31, 2014
Beijing and Berlin agreed to launch an offshore yuan trading center on Friday as President Xi Jinping visited Germany on the third leg of his European tour.
Beijing and Berlin
Beijing and BerlinBeijing and Berlin agreed to launch an offshore yuan trading center on Friday as President Xi Jinping visited Germany on the third leg of his European tour.


The central banks from both countries, the Bundesbank and the People's Bank of China, signed a Memorandum of Understanding (MoU) in Berlin to allow the clearing and settlement of yuan trades in Frankfurt. The center, in Germany's financial capital, will be the first of its kind in the eurozone.

It forms part of a series of deals the two countries signed on Friday, which sources say could be worth billions of euros. China will also set up a consulate in Duesseldorf.

In his meeting with German Chancellor Angela Merkel, Mr. Xi said deepening bilateral relations between the two countries will be beneficial to Europe and the world. He said the next five to 10 years will be a key period for mutual growth. The two countries will also set up a new dialogue mechanism on diplomacy and security, he said.

Ms. Merkel thanked China for its support and trust in the euro during the eurozone crisis and vowed to strengthen yuan cooperation with Beijing.

It is the first State visit to Germany by a Chinese president for eight years. After arriving in Berlin, Mr. Xi said cooperation between China and Germany has been fruitful since the countries established diplomatic relations more than 40 years ago. Both nations now share broader common interests and new cooperation opportunities, he said.

Germany is China's biggest trade and technology partner in the European Union. Bilateral trade volume reached $161.6 billion in 2013, 580 times that of 1972 when the two countries established diplomatic relations.


 

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