Bank’s huge deal re­flects po­ten­tial

China Daily (Canada) - - XI’S VISIT - By AN­DREW­MOODY in Johannesburg an­drew­moody@ chi­

Feng Li was in a buoy­ant mood af­ter a record day of busi­ness.

The ex­ec­u­tive vice-pres­i­dent of Bank of China’s Johannesburg branch had over­seen a 2.7 bil­lion yuan ($422 mil­lion) trans­ac­tion on Nov 30 for a Mau­ri­tius client — the bank’s big­gest sin­gle clear­ing deal in Africa.

It was fur­ther ev­i­dence that Chi­nese banks are play­ing an in­creas­ingly big­ger role in the African fi­nan­cial sec­tor.

Bank ofChina was au­tho­rized in July by Peo­ple’s Bank of China, China’s cen­tral bank, to serve as the clear­ing bank for ren­minbi busi­ness in South Africa. Even be­fore that, in the first eight months of this year, it was re­spon­si­ble for clear­ing 60 bil­lion of the 80 bil­lion yuan cleared on the con­ti­nent.

“This was our big­gest sin­gle trans­ac­tion since we be­gan ren­minbi clear­ing, and be­cause of the new au­tho­riza­tion, we ex­pect to do more,” the BOC ex­ec­u­tive said.

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