China’s central bank has appointed Deutsche Bank to be the first European clearing house for renminbi as Beijing seeks to increase the international use of its currency. The People’s Bank of China authorised the German lender as a renminbi clearing bank in Frankfurt on Monday night. Deutsche said on Tuesday that its appointment highlighted the renminbi’s “continued internationalisation” and the bank’s “growing role in facilitating trade, treasury and investment activity along major China–Europe corridors”.

Deutsche is the first non‑Chinese bank in Europe to be allowed to clear and settle renminbi transactions. “This establishes a direct bridge into China’s financial system and strengthens our ability to support clients engaged in Europe‑China trade and investment flows,” said Leo Yin, president of Deutsche Bank China. Yin expects European groups to use Deutsche’s renminbi clearing to reduce “currency friction” and streamline supply‑chain payments, while Chinese companies will fund European investments and maintain a presence in the renminbi ecosystem.

China has stepped up efforts to increase global use of its currency and challenge the dollar’s dominance, citing the 15th five‑year plan that calls for expanding the renminbi’s role in trade, investment and financing. Deutsche has long been involved in renminbi internationalisation, joining the Cross‑Border Interbank Payment System in 2015, and remains the top‑ranked non‑Chinese bank for “panda bond” deals this year. With Chinese interest rates at historic lows, borrowing in renminbi has surged, but the currency’s share as a reserve remains low due to low yields, slowing growth and rising debt‑to‑GDP.