Citi has implemented a global renminbi (RMB) netting solution for Samsung Electronics, one of the world’s leading electronic companies.
In March this year, Samsung Electronics started trading the RMB directly with the South Korean won (KRW), converting its trading flows between China and Korea into RMB and settling transactions between its headquarters and Chinese subsidiaries more efficiently.
Samsung Electronics and Citi subsequently pioneered a global RMB netting solution, managed by the tech company’s global netting centre and utilising Citi’s global platforms and netting services.”This solution brings significant opportunities for more effective liquidity management and working capital optimisation for Samsung Electronics,” commented Citi.
“This is a landmark mandate, with Samsung Electronics conducting the world’s first intercompany cross-border netting transaction using RMB, leveraging the most recent nationwide policy reform in China and paving the way for other multinational corporations [MNCs] to follow.”
“In-house banks [IHBs] and netting structures are an increasing trend for our clients as they take treasury centralisation to the next level,” said Amol Gupte, regional head of treasury and trade solutions, Citi Asia Pacific.
“Citi is honoured to be part of this historical transaction, which would not have been possible without the confidence instilled in the market by the Chinese and overseas regulators, especially in Hong Kong and South Korea.”
Today CGI and GTNews have announced the launch of the fifth annual Transaction Banking survey report, which offers which offers critical insight into the corporate-to-bank relationship.
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.
Treasurers are being expected to do more work with fewer resources than ever before, so it is little wonder that the automation of day-to-day operations was highly discussed on the second day of EuroFinance, the annual treasury event held in Barcelona this week.
Chicago based Treasury Management System (TMS) vendor GTreasury and Sydney based risk and treasury management vendor Visual Risk have joined forces in a strategic alliance to ... read more