The sources said China's central bank will award the mandate to Bank of China, the country's fourth-largest bank by market capitalisation and the world's biggest player in cross-border yuan transactions.
Yuan clearing banks not only make cross-border yuan payments more timely and convenient, but increase the awareness of yuan usage among local companies and help yuan deposits to accumulate in a country.
Reserve Bank of Australia (RBA) Deputy Governor Philip Lowe said in July that the central bank was working with the People's Bank of China (PBOC) on a memorandum of understanding that would allow a clearing bank to be selected this year.