Citi has launched full renminbi (RMB) cash management and trade solutions for RMB accounts domiciled in the U.K., with services covering payments and collections, trade services, financing, FX transactions and hedging solutions.
Citi says the launch leverages the internationalization of RMB and London as an offshore center for RMB business.
In addition to helping companies with liquidity management and supply chain relationships in China, the new solution makes RMB FX management more efficient and transparent and allows clients to hedge against adverse currency movements, Citi says.
EMEA is the second largest trade partner with China, and the European market is quick to adopt RMB denominated transactions, says Rajesh Mehta, EMEA head of Treasury & Trade Solutions for Citi.
Mehta cited SWIFT RMB Tracker, which notes that Europe currently represents 47% of RMB global payments, excluding China and Hong Kong.
Our London platform is an ideal hub to roll out our new RMB solution, thereby allowing our clients to gain better access to the Chinese market and capture new growth opportunities, Mehta says.
London has grown as a hub for the offshore renminbi market. The U.K. Treasury and the Hong Kong Monetary Authority (HKMA) launched a joint private sector forum that aims to improve cooperation between the U.K. and Hong Kong to support the Chinese governments development of the offshore RMB market earlier this year.
Our economists expect China to become the worlds biggest importer as well as the biggest country by trade value by 2015, and we want to help our clients access this growing market, says Naveed Sultan, Global Head of Treasury & Trade Solutions. By offering a wide range of RMB products and services, we demonstrate our commitment to support our clients business globally and help them embrace RMB in their trade and cash management practices.
(CG)