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Luxembourg set to internationalize Renminbi

November 8, 2013

Underlining the increasing role of the Luxembourg financial center in the internationalization of the Chinese Renminbi (RMB), Luxembourg’s Finance Minister Luc Frieden announced the launch of a new web portal dedicated to the development of activities linked to the currency in Luxembourg.

Grand Ducal Palace, Luxembourg

The new web portal forms part of ongoing efforts over the past few years to promote and to further diversify the Grand Duchy’s financial market and to secure the future of the financial center. The Government’s strategy for developing the Luxembourg financial center is based on four axes, namely strengthening existing pillars, creating new products and services, promoting the financial center abroad, and diversifying the financial center geographically.

The Grand Ducal Palace, Luxembourg. Picture courtesy of Ernmuhl.

Underlining the importance of positioning Luxembourg more internationally in a global financial market, Frieden explained that, given its rapid economic growth, China constitutes “an ideal partner.” Similarly, China is committed to internationalizing the RMB and is currently looking for access to global financial markets, the Minister pointed out, alluding to the fact that the Bank of China and the Industrial and Commercial Bank of China both now have their European headquarters in Luxembourg.

Luxembourg already plays a significant role in the international trade of the RMB, Frieden continued, citing the fact that RMB40bn (USD6.5bn) in deposits are held in the Grand Duchy and that RMB62bn in loans have been issued, and noting that 40 RMB-denominated bonds are listed on the Luxembourg Stock Exchange. Trade in the RMB and access to the RMB are vitally important for the Luxembourg financial center, in particular for the funds industry, Frieden ended.

The Luxembourg Government is not only reflecting constantly on the financial center’s future, but also on Luxembourg’s future economy and taxation, to ensure that its tax regime remains competitive and attractive for investors. At the same time, Luxembourg aims to guarantee legal certainty for investors, by ensuring that it is tax compliant, adopting the latest international regulations and standards in tax matters.

Tax & Money Havens

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