Citis Transaction Services division has launched renminbi (RMB) letters of credit in Latin America for domestic institutions trading with Chinese partners.
Citi says firms in Latin America may now settle trade transactions with Chinese counterparties directly in RMB through letters of credit, which it says are the most utilized method to settle transactions in Chinese-Latin American trading activity.
This is a great, innovative capability that will help accelerate the connectivity between Latin America and Asia, in this case China, for our clients in both regions, says Fernando Iraola, Latin America & Mexico region head at Citi Transaction Services.
Othman M. Gamero, Trade Services head for Latin America, Citi Transaction Services, adds: Through the launch of this RMB settlement solution in Latin America, added to our other complementary trade solutions, we are providing our clients in the most active trade corridor in the region with a unique value proposition, which addresses the fast-changing demands of international trade with China, allowing them to be a market leader and a competitive force solely through their partnership with Citi.
Citi in March also recently launched a Latin America Trade Desk based in Shanghai, China, servicing offering cash management, trade and securities and fund services.
In May, Citi launched full 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.
(CG)