Bulletin – June 2012 Description for Figure 1 in article: Internationalising the Renminbi
This figure is a stylised representation of the structure of the onshore and offshore markets for RMB, and the two channels through which RMB trade settlement can take place: via a Mainland correspondent bank (in which case the RMB remains onshore and subject to Chinese regulations; dotted green line) or via the BOCHK (in which case the RMB can be held in the offshore market, or invested in the Mainland via an approved channel; blue arrows). Participating Banks in the offshore market are able to access both of these channels, while other banks wishing to settle RMB transactions for trade settlement must do so via an arrangement with a Participating Bank.
[End description.]