BOC authorized as RMB clearing bank in Frankfurt

China's central bank announced on Thursday that it has authorized the Bank of China (BOC), one of China's big-four banks, to be the clearing bank for renminbi (RMB) business in Frankfurt.

The work will be undertaken by the BOC Frankfurt Branch, the People's Bank of China (PBOC) said in a statement on its website.

The PBOC made the decision in accordance with a memorandum of understanding (MOU) it signed with the Deutsche Bundesbank on March 28.

The MOU is expected to help turn the German city into an offshore RMB center.

Frankfurt is one of the most important financial hubs in Europe and the seat of two central banks -- the Bundesbank and the European Central Bank.