Letter to the Honourable Joe Oliver, Minister of Finance, regarding establishing an offshore Renminbi centre in Toronto
On behalf of the Canadian Council of Chief Executives (CCCE), I am writing to indicate our support of the Toronto Financial Services Alliance (TFSA) bid to establish an offshore Renminbi (RMB) centre in Toronto.
China’s economy continues to grow rapidly and could become the world’s largest by 2020. This growth drives trade and with it, the international use of the RMB. Along with the Mexican peso, the RMB has witnessed the most significant rise in market share among major emerging market currencies. In fact, the RMB is expected to become one of the three most traded currencies in the world by 2015. This will take China’s financial integration with global markets to a new level.
The increasing international use of the RMB creates a unique opportunity for Canada to establish the only offshore centre in North America. The Toronto RMB centre will be a location for RMB products and services trade. This will reduce foreign exchange costs for importers and exporters, facilitating both trade and investment.
Toronto has the opportunity to be a market leader. While no formal legislative changes are required, the active support of the government shows that Canada is serious about developing an offshore RMB centre.
Canada must act quickly to seize opportunities in Asia. Establishing an offshore RMB centre in Canada is a step in the right direction.
If I can be of any assistance, please do not hesitate to contact me.
The Honourable John Manley
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