Citibank (China) Co (Citi China) has completed its first cross-border lending transaction in renminbi (RMB).
The bank said that the transaction, conducted on behalf of a European food company, is structured to optimise the company’s treasury activities by leveraging its China operation’s surplus cash. The lending to its group treasury centre in Singapore is a critical step to expand and include RMB into the company’s treasury management currency basket.
“We are excited to bring this milestone transaction to realisation,” said Yigen Pei, country head of Citi Transaction Services for China. “This creates a new treasury solution which will help our clients to connect China with their regional and global treasury centres and achieve greater efficiency in their global fund usage and allocation. This will also signify important progress of RMB internationalisation by establishing a bigger role for the currency in multinationals’ treasury management globally.”
The People’s Bank of China first introduced the RMB cross-border initiative in July 2009 to provide companies with greater foreign exchange (FX) savings and operational efficiencies as well as to promote the internationalisation process of RMB.
On day one of SIBOS, panellists unanimously agreed that doing nothing to modernise payments was no longer safe bet for transaction banking.
On day one of Sibos 2017, Stefan Dab, The Boston Consulting Group led a conversation examining the future of correspondent banking, and specifically the pain points corporate treasurers face in their cross-border payments operations and where technology can be developed to alleviate these.
Rising interest rates, excitement around blockchain use cases and cross-border payments were all hot topics at this year's AFP conference in San Deigo.
The US dollar and debt yields falling on the North Korea missile test, treasury being a top target for cyber criminals and why treasurers aren't into real-time payments all hit the latest headlines in the world of treasury this week. Don't miss our ten top news stories from around the world.