As a leading investment advisor company with a strong emphasis on the Asia Pacific region, RCI Capital Inc. was pleased to learn that a Chinese currency settlement hub is planned for Canada in the near future.
A Canadian Chamber of Commerce report calculates that establishing a renminbi hub — with Toronto or Vancouver as key centers– could boost Canadian exports to China by as much as $32-billion and save importers $2.8-billion in transaction costs over 10 years.
According to the Globe and Mail, Ottawa and Beijing have struck a deal that would see this country designated as a trading hub for China’s renminbi currency, a benefit that will lower the cost of doing business for Canadian companies seeking Chinese markets.
Using a model with historic provincial growth rates adjusted for industry mix, a Canadian Chamber of Commerce report suggests that British Columbia would see the biggest gain in exports, an additional $9.37 billion over the next decade. Indeed, the provinces that will see the greatest gains are those that have already have strong exports to China, which export forestry, metals and other commodities and that are in industries with thin margins and prices that are often set internationally. (P9, Doing More Business With China, Canadian Chamber of Commerce).