BMO Financial Group
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BMO Financial Group

November 08, 2014 06:09 ET

BMO Applauds Announcement on Canadian Renminbi Hub

BEIJING, CHINA and TORONTO, ONTARIO--(Marketwired - Nov. 8, 2014) -

Editors Note: There is a photo associated with this press release.

BMO Financial Group today applauded the agreement to establish a Canadian Renminbi (RMB) hub. The announcement took place during Prime Minister Stephen Harper's visit to China.

"This is fantastic news for Canadian companies," said C.J. Gavsie, Global Head of FX Products & China Capital Markets, BMO Capital Markets, who joined Prime Minister Harper and Canada's Minister of Trade and Minister for the Asia-Pacific Gateway, Ed Fast, at the announcement in Beijing.

"The trading hub will ensure that Canadian firms doing business in China can purchase RMB on the open market without converting to another currency first. As we've seen in other jurisdictions, the cost savings will lead to more trade. This, in turn, will create more jobs for Canadians."

Mr. Gavsie noted that if patterns seen in other global RMB hubs are replicated in Canada, total trade could double or even triple between Canada and China in the 12 months following the establishment of a hub.

Mr. Gavsie applauded the governments of Canada and China for their efforts to establish a hub. "We thank the Prime Minister and his officials for getting this to the goal line."

Mr. Gavsie noted that a hub will also 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 in its list of the most attractive destinations for business. Becoming an RMB hub will increase the diversity of our financial sector, and make Canada an even more appealing place in which to invest and do business."

Mr. Gavsie is in China and available for interviews; to arrange, please email him directly at CJ.Gavsie@bmo.com.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified financial services organization based in North America. The bank offers a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers. BMO Financial Group had more than $586 billion in total assets and approximately 47,000 employees at July 31, 2014.

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