| HSBC offers yuan settlement service |
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| Saturday,November 07,2009 Posted: 15:00 BJT(0700 GMT) |
| From:Brunei Times Article type:Reproduced |
HSBC Brunei has made available a facility through which Brunei-based companies can transact with China-based trading partners in renminbi.
The bank yesterday said in a statement the completion of its first renminbi-denominated trade settlement with China in cooperation with its strategic partner, Bank of Communications.
"This is a platform that is set up for companies in Brunei who are dealing with Chinese companies and would need to make their payment in renminbi," said Irene Tse, head of corporate banking for HSBC Brunei.
There are already a lot of regional countries that have introduced this option into their corporate banking and, with China being one of the fastest growing countries in terms of trade, this is about HSBC establishing a platform for when renminbi will become a major currency.
'China is a major supplier for the world and at the moment a lot of the companies that are dealing with China are not paying in renminbi because the Chinese regulators are in the first phase of their pilot programme to facilitate the use of renminbi, where they have limited about 365 plus companies to deal in the currency," said Tse.
This service is already being made available globally, with Hong Kong being the first bank to make this product available, said Tse. Thailand, Vietnam and Malaysia also have the service available for local companies. She said firms that are dealing with China-based companies that would like this service would have to be linked with HSBC in order to make their payments in renminbi.
"The renminbi addition to our existing comprehensive suite of Foreign Currency Trade Services fortifies our undivided commitment to customers in their cross-border dealings with China. This capability represents a strategic milestone in HSBC's value proposition for international trade with China," said Tse.
While the initiative is initially available to designated enterprises in China, local businesses having underlying trade transactions with the said designated enterprises would be eligible. "This will accord both local and Chinese businesses an additional currency to settle their trade transactions," HSBC Brunei said in a statement.
"In the current environment, businesses are increasingly looking overseas, particularly China, for new opportunities. Through HSBC's international franchise and expertise in trade finance, we are able to offer customers the competitive edge by creating real benefits for them in supporting their businesses and international trade," said Tse. The Brunei Times
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