Euroclear Bank is set to settle transactions, deposit Eurobonds and Hong Kong domestic securities denominated in the Chinese Yuan Renminbi starting 27 September 2010.

The Yuan Renminbi is the 53rd settlement currency offered by Euroclear Bank.

According to the People’s Bank of China, the volume of global trade settled in Renminbi has grown from 3.6 billion in the first half of 2009 to 70.6 billion in the first half of 2010.

The People’s Bank of China and the Hong Kong Monetary Authority recently reached an agreement for the offshore Renminbi business to be supported in Hong Kong.

Euroclear Bank Hong Kong branch office regional head and general manager Olivier Grimonpont said that as offshore borrowers look to raise funding in Renminbi or to broaden their investor base, investors will be able to settle these transactions in Euroclear Bank and eliminate foreign-exchange risk by having to settle in alternative currencies.

“The steady supply of Renminbi Eurobond issues to date, with ever-increasing sizes and tenors, demonstrates a growing market appetite for these securities. Euroclear Bank aims to take an early and significant role in servicing these securities for issuers and investors alike,” Grimonpont said.

Euroclear is a Belgium based financial services company that specializes in the settlement of securities transactions.