A file photo of Bank of China. [Photo: cankaoxiaoxi.com]

The Bank of China has been tapped to be the clearing bank for RMB transactions in Hungary.

Any deals done with the renminbi will be processed through the BOC's Budapest Branch.

The establishment of the RMB clearing bank in Hungary is part of the Chinese government's 'Belt and Road Initiative.'

Hungarian authorities have been attempting to convince Chinese authorities to use Hungary as its European transfer location for goods moved too and from Europe as part of the broad-based Chinese initiative.