BMO Financial Group

BMO Financial Group

March 24, 2015 09:54 ET

BMO Initiates First-Ever Currency Trade Through the New Canadian RMB Trading Hub

TORONTO, ONTARIO--(Marketwired - March 24, 2015) -

Editors note: There are two photos associated with this press release.

BMO Financial Group today initiated the first-ever trade through the new RMB Hub for the Americas, which launched in Canada this week. The trade took place at BMO's Toronto headquarters, in the presence of Toronto Mayor John Tory, BMO Chief Executive Officer Bill Downe, BMO Capital Markets Chief Executive Officer and Group Head Darryl White, Chairman, BMO Nesbitt Burns and President, BMO Financial Group, Quebec L. Jacques Ménard and Dave McKinnon, Managing Director, Treasury Trading for Manulife Financial.

"This historic first trade for RMB on Canadian soil represents a significant milestone in Canada-China trade, and an important step toward ensuring companies across the Americas are on a level playing field with their global competitors when doing business with China," said C.J. Gavsie, Global Head of FX Products & China Capital Markets, BMO Capital Markets, who initiated the trade.

"North and South American firms doing business in China can now purchase RMB on the open market through the RMB Hub based in Canada, without converting to another currency first," stated Mr. Gavsie. "As we've seen in other jurisdictions, the cost savings will lead to more trade. This, in turn, will create more jobs for Canadians. We are also pleased to be able to offer these services to our U.S. clients who seek the price transparency that the new RMB hub will bring."

Mr. Gavsie also reiterated BMO's appreciation for the efforts of the governments of Canada and China in establishing the hub. "We thank Prime Minister Harper, Finance Minister Oliver, the Bank of Canada, the Governments of B.C. and Ontario and the City of Toronto for getting this done."

Mr. Gavsie also noted the trading hub will 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 on its list of the most attractive destinations for business. The start of operations for the RMB hub increases the diversity of our financial sector, making Canada an even more appealing place in which to invest and do business."

About BMO in Asia

BMO has had a long history of doing business in Asia, especially in China. BMO is currently the only Canadian and one of only three North American banks with an established subsidiary bank in Mainland China. BMO's offices in Asia allow the bank the flexibility to expand its product and service offerings for North American and Asian clients.

BMO's presence in Asia includes:

  • BMO's subsidiary bank in Mainland China - Bank of Montreal (China) Co. Ltd. (BMO ChinaCo), with branches in Beijing, Shanghai and Guangzhou;
  • BMO branch in Hong Kong;
  • BMO branch in Singapore;
  • BMO Capital Markets representative office in Beijing;
  • BMO Capital Markets representative office in Taipei;
  • BMO Global Asset Management Asia in Hong Kong;
  • A 28 per cent equity stake in Fullgoal Fund Management Co. Ltd., based in Shanghai; and
  • A 19.99 per cent equity stake in COFCO Trust Co. Ltd., based in Beijing.

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 total assets of approximately $672 billion and more than 47,000 employees at January 31, 2015.

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