PARIS, June 29 The French central bank on Sunday
said it had signed a memorandum of understanding (MoU) with its
Chinese counterpart to set up a renminbi payment system in
"This MoU is the first step towards the creation of a
renminbi clearing and settlement infrastructure in Paris," the
French central bank said in a statement.
Competition is fierce among Europe's major financial centres
to trade in China's currency. Frankfurt and Luxembourg are vying
with London, the favourite of many analysts, and Switzerland is
trying to muscle its way into the competition.
The payment system agreed between France and China will
function on the basis of a clearing bank that will be designated
by the People's Bank of China (PBOC), the French central bank
China stepped up plans to increase the international use of
its currency last October with an agreement between the European
Central Bank and the PBOC to swap euros and yuan.
That deal followed a string of currency swaps China set up
with other nations to promote the use of yuan for commercial and
(Reporting by Sybille de La Hamaide; editing by Keiron