Citi’s Global Transaction Services has signed an agreement with Bank of China (Hong Kong) Limited (BOCHK) to appoint Citi as its Continuous Linked Settlement (CLS) Nostro Agent for US Dollar. Under the agreement, Citi will provide nostro account services and liquidity to BOCHK to facilitate CLS settlement with CLS Bank, the industry-operated foreign exchange cooperative, owned by 69 shareholder banks.
BOCHK’s parent company, Bank of China Limited, became a shareholder bank of CLS Bank in late 2006. Acting as a Settlement Member, BOCHK is closely involved in its parent’s global CLS initiative. Citi was selected as BOCHK’s Nostro Agent Bank through a selective bidding process which included other major service providers.
The agreement between Citi and BOCHK marks the latest collaboration between the two parties. Citi’s Global Transaction Services maintains a long-standing relationship with BOCHK, providing an array of correspondent banking services and solutions.
“Citi is honored to deepen our relationship with BOCHK. By leveraging Citi’s experience, solutions and customer support in CLS payments, BOCHK can better serve its growing client base and maintain its leading edge in providing this pivotal service internationally,” says Akash Rathke, managing director and regional head of bank services and public sector groups, Asia Pacific.
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