Qatar Central Bank signs MOUs with the China Banking Regulatory Commission and the People’s Bank of China (PBC), as well as a Currency Swap Agreement with the PBC in order for the State of Qatar to become a centre for renminbi (“RMB”) clearing and settlement. During the visit, HH the President of China announced that the State of Qatar has been granted a 30 billion Yuan share to invest in RQFII.
3 November 2014. H.E. Sheikh Abdulla Bin Saoud Al-Thani, Governor of the Qatar Central Bank (“QCB”), signed a Memorandum of Understanding(“MoU”) and a Swap Agreement with the People’s Bank of China (“PBC”) today during the visit of H.H. The Emir to China. The agreements were signed in Beijing in the presence of H.H. The Emir and H.E. Xi Jinping, President of China.
The MoU establishes the framework for a centre for renminbi (“RMB”) clearing and settlement in Doha, Qatar. Under the MoU, the central banks will jointly review the implementation of the necessary arrangements for the RMB businesses in Qatar and co-operate on related supervisory matters. The signing of the MoU and the appointment of the RMB clearing bank will increase the strong ties between China and Qatar and position Qatar as the regional centre for the RMB clearing and settlement. The central banks also agreed to extend the RQFII pilot to Qatar with an initial quota of 30 billion CNY. The RQFII quota will be available to asset managers licensed in Qatar by the QCB, the Qatar Financial Markets Authority or the QFC Regulatory Authority.
H.E. Sheikh Abdulla Bin Saoud Al-Thani also signed an agreement with PBC to establish a reciprocal 3 year currency swap line with a value of RMB35 billion. The swap line will facilitate RMB trade and investment and provide liquidity and support for financial stability.
Furthermore, H.E. Sheikh Abdullah Bin Saoud Al-Thani, Governor of Qatar Central Bank signed a memorandum of understanding with the China Banking Regulatory Commission, which shall facilitate the promotion of the representative offices of Qatari banks in China into full branches.