Becoming a yuan currency trading hub  would secure Canada's position in the global race for a share of currency trading in China, currently the world's second most important economy.

Plans were made on a meeting between Canada's financial institutions such as banks, insurance houses, pension funds and the Bank of Canada in Toronto on June 21. Chinese banks also have representatives on this said meeting.

Canada is seeking to emulate London, Singapore and Hong Kong. The idea was stimulated by news of European Central Bank setting up a deal with China to assist the German Financial Center into becoming a yuan currency trading hub in Europe.

To become a currency trading hub for the yuan, a country's central bank needs to enter into agreement with China's central bank so that its currency can be swapped for yuan.