Deutsche Bank has executed the first onshore direct trade of the euro with the renminbi, marking a major milestone in the ongoing internationalization of the renminbi by establishing a direct trading pair with the world's second most traded currency.

 

"Today's trade is indicative of how far the renminbi has come in its internationalization process. We fully expect there to be very active trading of this currency pair given the significance of the EU-China trade corridor and the keen interest we have seen in re-denomination of corresponding trade settlement into renminbi. Deutsche Bank is proud to have been involved in yet another first for the currency," said Beng-Hong Lee, Deutsche Bank head of markets, China.

 

Direct trade of the euro with the renminbi will drive the establishment of an exchange rate between the two currencies and serve to reduce currency and hedging costs for trading partners spanning Europe and China.

 

Deutsche Bank is committed to the development of the renminbi through all facets of foreign exchange, capital markets, credit trading and transaction banking, it said.