Word is Canadian banks are looking at trying to create a centre for trading China’s yuan in Toronto, hoping to steal a march on the U.S.
The idea is a nice niche play for a financial centre that has probably not capitalized on all the headlines about Canadian strength as much as expected.
Coming out of the financial crisis, the feeling was that Canada was ascendant as an international financial centre. At the margin, it’s been true. The country’s big banks and brokerages are stronger, having used the opportunity to acquire people and businesses, but in an incrementalist rather than transformative fashion for the most part. From a risk point of view, it was the smart play.