Canadian, Chinese Officials Mull Possible Yuan Trading Hub in Toronto.

[Dinar_o'saurs]

TORONTO--Canadian banking, government and financial officials are in the beginning stage of discussions on whether to set up Toronto as a major offshore hub for the Chinese yuan, said a senior official who attended the first meeting.

Janet Ecker, president and CEO of Toronto Financial Service Alliance, said a group of Canadian and Chinese officials met last week to discuss whether it would be feasible for Toronto to establish an offshore trading hub for the yuan.

The purpose of the meeting was to bring together stakeholders who would have the relevant expertise and would be involved in deciding if it would go to the next step, said Ms. Ecker, who attended the meeting in Toronto.

Ms. Ecker said the meeting was prompted by the growing trade between China and Canada, as well as observing how other global financial centers have already been "quite assertive" in establishing offshore yuan trading hubs.

No formal decision has been made whether an offshore trading hub would work in Toronto, Ms. Ecker said. "We are currently assessing the feedback," she said.

Last Monday, Bank of England and the People's Bank of China agreed to swap their respective currencies to help facilitate yuan trading in London by ensuring that banks there would have access to liquidity from central bank funds.

Other major financial centers, including Hong Kong and Singapore, have also established themselves as major offshore yuan trading hubs as the use of the Chinese currency for settlement purposes becomes increasingly common.

Ms. Ecker declined to comment on who attended the meetings, but added that Chinese banking and financial officials attended the meeting as well.

Spokespeople from the Bank of Canada, Royal Bank of Canada (RY), Bank of Montreal (BMO), Toronto-Dominion Bank (TD) and the Canadian Imperial Bank of Commerce (CM) declined to comment on the meeting.

Spokespeople from the Bank of Nova Scotia (BNS) and the Department of Finance couldn't be reached for comment.