Deutsche Bank’s global transaction banking division has executed the first two-way renminbi (RMB) cash sweep in Shanghai since the People’s Bank of China’s (PBoC) RMB cross-border pilot was extended nationwide in November.
The client, the Netherlands-based Koninklijke DSM NV (DSM), is a global science-based company active in the health, nutrition and materials sectors.
“We are proud to be the first bank to execute a cross-border sweep in Shanghai under PBoC’s nationwide RMB cross-border scheme,” said Anthony Lin, head of corporate bank and trade finance and cash management corporates in China at Deutsche Bank.
He added that the solution would allow DSM to set target balances for better liquidity management at a group level. At the same time, the stable source of RMB liquidity offers a natural hedge for its offshore RMB transactions, thereby creating additional cost efficiencies.
Vivian Huang, regional treasurer China at DSM, added that solution would likely enable the group to maximise its liquidity utilisation, enhance intra-company financing and reduce external borrowing costs, to benefit its global business.
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