Letters of credit (L/Cs) appear to be substantially helping London establish a position as the world's western hub for the Chinese currency.

The UK capital saw spot renminbi (RMB) foreign exchange volumes double in the first half of 2013 compared with the same period in the previous year according to a recent report.

L/C growth

The report from the City of London Corporation says RMB foreign exchange volumes hit a daily value of US$4.8 billion in the six months to June 2013.

The study says trade-related services showed steady growth, and indicated a particularly high increase in L/Cs, which reached a total of 3.3 billion yuan.

Participating banks

Overall trade financing volumes more than tripled in the period compared with the first half of 2011 according to the report prepared for the City by Bourse consult.

The City of Londonlaunched its renminbi initiative in April 2012 with key participants including Bank of China, Barclays, Citi, Deutsche Bank, HSBC and Royal Bank of Scotland.

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