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.
Data from S&P Global Market Intelligence suggest that the German lender is struggling to meet capital and earnings figures.
Global digital payment volumes are set to reach 426.3bin transactions in 2015, according to the World Payments Report 2016 fromCapgemini and BNP Paribas.
The T+2 Industry Steering Committee (T+2 ISC) has welcomed recent action by the Securities and Exchange Commission (SEC) to propose a rule ... read more
Data from Swift’s latest RMB tracker shows exceptional growth in RMB adoption in the United Arab Emirates (UAE), witnessing a 210.8% growth in payments value of the currency since August 2014, albeit from a low base.