JP Morgan treasury services has launched new escrow services in South Africa to help clients mitigate counterparty risk. Already an escrow provider in the US and Europe, JP Morgan will now provide escrow services in South Africa, under local law, in South African rand and major foreign currencies. Escrow services assist clients to mitigate risk in relation to mergers and acquisitions (M&A), trade finance, project and construction finance transactions, and litigation.
The firm is currently extending its footprint in the sub-Saharan Africa region, having recently expanded its office in Nigeria and in the process of setting up new representative offices in Ghana and Kenya.
“We estimate that more than 80% of JP Morgan’s top 100 global multinational clients are doing business in sub-Saharan Africa, with their presence on the continent set to grow steadily over the next 20 years,” said Chris Martin, head of JP Morgan treasury and securities services in sub-Saharan Africa. “The launch of escrow services therefore demonstrates another step in our ongoing commitment to expand JP Morgan’s international banking capabilities by addressing the ever more global nature of our clients in the markets that matter to them the most.”
The country is expected to survive the review, which it must do to retain its place in the European Central Bank’s asset purchase programme.
The bank believes that the battered UK currency, recently only just holding above the US$1.20 level, could be trading at US$1.36 by this time next year.
The group reports that currency fluctuations were less of a challenge to multinationals in the second quarter of 2016, but Brexit has since spelt a return to volatility.
The business group says that the UK’s withdrawal from the EU puts nearly US$600bn of investment at risk, according to a Financial Times report.