BMO Financial Group today initiated the first-ever trade through the new RMB Hub for the Americas, which launched in Canada this week.
The trade took place at BMO's Toronto headquarters, in the presence of Toronto Mayor John Tory, BMO Chief Executive Officer Bill Downe, BMO Capital Markets Chief Executive Officer and Group Head Darryl White, Chairman, BMO Nesbitt Burns and President, BMO Financial Group, Quebec L. Jacques Ménard and Dave McKinnon, Managing Director, Treasury Trading for Manulife Financial.
"This historic first trade for RMB on Canadian soil represents a significant milestone in Canada-China trade, and an important step toward ensuring companies across the Americas are on a level playing field with their global competitors when doing business with China," said C.J. Gavsie, Global Head of FX Products & China Capital Markets, BMO Capital Markets, who initiated the trade.
"North and South American firms doing business in China can now purchase RMB on the open market through the RMB Hub based in Canada, without converting to another currency first," stated Mr. Gavsie. "As we've seen in other jurisdictions, the cost savings will lead to more trade. This, in turn, will create more jobs for Canadians. We are also pleased to be able to offer these services to our U.S. clients who seek the price transparency that the new RMB hub will bring."
Mr. Gavsie also reiterated BMO's appreciation for the efforts of the governments of Canada and China in establishing the hub. "We thank Prime Minister Harper, Finance Minister Oliver, the Bank of Canada, the Governments of B.C. and Ontario and the City of Toronto for getting this done."
Mr. Gavsie also noted the trading hub will enhance Canada's brand around the world. "Canada's banking system has already been rated the soundest in the world for the past seven years by the World Economic Forum, and Bloomberg has ranked Canada in second place on its list of the most attractive destinations for business. The start of operations for the RMB hub increases the diversity of our financial sector, making Canada an even more appealing place in which to invest and do business."