Paris vies to be yuan hub (3)

Paris: Growing interest in renminbi business

A survey by the association also showed that 50 percent of French companies have used yuan-denominated products and services.

"France's historic relationship with Africa, and its favorable geographical location, also makes Paris a natural hub for RMB trading in the Sino-African business flows that are traded through Paris," De Bresson said.

Chinese financial institutions in France have also been benefiting from the growing interest in yuan business in the French capital.

The Paris branch of Bank of China has seen its cross-border yuan settlement reach 170 billion yuan, the largest amount of all BOC branches outside the Chinese mainland except Hong Kong.

Yuan business now contributes almost half of the branch's total income, according to Phan Nhay, general manager of BOC's Paris branch.

De Bresson added: "The internationalization of the yuan is a key opportunity for market players and international corporates in France. It is an irreversible trend that the demand for RMB-denominated products will increase at a faster pace in coming years."

De Bresson said the main challenge for Paris to develop its yuan trading market is to widen the understanding and opportunities offered by internationalization of the currency, and full convertibility will help contribute to the process.

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