China to establish RMB clearing bank in Thailand

China is Thailand's largest trading partner.

China seeks to set-up a renminbi clearing bank in Thailand to meet demand for cross-border renminbi trade settlements by Chinese and Thai companies.

Chinese Premier Li Keqiang said the bank will help meet the target annual bilateral trade of US$100 billion between China and Thailand by 2015. Bilateral trade between China and Thailand stood at US$70 billion in 2012.

Thailand is China's second-largest trading partner in the 10-member Association of Southeast Asian Nations.

A renminbi clearing bank in Thailand will also serve the goal of increasing circulation of Chinese currency in Southeast Asian nations. The volume of bilateral swap agreements between China and ASEAN has hit US$228 billion while renminbi-denominated cross-border settlements reached US$183 billion by this June.