The Australian Securities Exchange is promising that counterparty balances will be credited intraday when it launches a renminbi settlement service in partnership with Bank of China in the middle of the year. Counterparties will be able to use RMB as a settlement currency for trade deals, foreign exchange transactions and investments. By no longer having to use US dollars as a settlement currency, counterparties will save time and money. The deal also opens up the possibility of Australia becoming a hub for renminbi transactions throughout the region. The ASX will settle through its Austraclear platform, which is currently used to settle government and corporate fixed income trading, as well as repurchase transactions between banks and the Reserve Bank. Austraclear has 700 members. It has A$1.3 trillion of assets and settles $3 trillion of transactions a year. Payments will be handled by the Swift network. The arrangement between ASX and Bank of China may not be the only renminbi settlement service in Australia. The Australia Financial Review reported yesterday that China Construction Bank had made a similar agreement with the Big Four local banks. In April last year, HSBC China received approval from China's central bank to be a market maker for direct trading of the renminbi and Australian dollar.