Johannesburg, July 8th (People’s Daily Online) The People’s Bank of China (PBOC) appointed Bank of China (BOC) Johannesburg Branch as the Renminbi Clearing Bank in South Africa. PBOC, the country's central bank, signed a memorandum of cooperation earlier with the South African central bank to establish yuan clearing business in South Africa, which is the first yuan clearing arrangement in Africa.

Statistics show that China is Africa’s largest trade partner, with South Africa in particular enjoying close economic and trade ties with China. It is anticipated that infrastructure construction cooperation between China and Africa will in the forefront and thus translate into demand in terms of Renminbi trade, investment and finance.

As BOC indicated, the establishment of Renminbi clearing mechanism will act as an ideal conduit and enhance capabilities for Renminbi settlement, investment and finance in South Africa and Africa as a whole.

To-date, BOC successfully fulfills this prestigious role in 9 areas worldwide including Hong Kong, Macao, Taiwan, Germany, France, Australia, Malaysia, Hungary and now South Africa. From January to May 2015, BOC Renminbi clearing business volume reached an unprecedented CNY 1.206 trillion; which translates to a year-on- year growth of 30.4%.

BOC Johannesburg Branch was the first Chinese bank in South Africa opening its operation in October 2000, with the frst Renminbi business settlement dating back to 2010. Nowadays, BOC Johannesburg Branch is providing clearing services for 60 financial institutions throughout the African geography. In addition, it services 15 financial institutions in South Africa.