Ontario is considering borrowing in Chinese currency for the first time after Canada became the only trading hub for the renminbi in the Americas earlier this year, the province’s finance minister said.
Ontario will look to explore the possibility of a trade mission to China later this year, Finance Minister Charles Sousa said on Thursday.
“We will obviously revisit opportunities that may exist and it’s something we’ll consider as we proceed to a mission to China,” Sousa said on the sidelines of a conference on the renminbi hub organized by the Toronto Financial Services Alliance and Bloomberg LP in the city. “I’ll be looking hopefully to going out there in the fall. We have yet to determine that too.”
China and Canada agreed last year to set up a currency hub which will allow firms to exchange Canadian dollars directly for renminbi, more widely known as the yuan, without having to convert first into the U.S. greenback. Countries around the world are opening trading centers for the yuan, which surpassed the euro last year to become the most widely used currency in trade finance after the U.S. dollar.
British Columbia, which has a large Chinese population, became the first foreign government to issue yuan-denominated bonds in 2013.