Deutsche Bank, the largest provider of liquidity to global and Asian currency markets*, completed today the first cross-border Renminbi payment under the People’s Bank of China (PBOC) Shanghai’s Simplified RMB Cross-Border Payment Pilot Scheme (SRCP). The bank executed an import trade payment denominated in RMB for the China subsidiary of Huettenes-Albertus, the market-leading German manufacturer of foundry chemical products.
The SRCP significantly streamlines the process for cross-border trade settlement payments made in Renminbi, as qualifying corporates are no longer required to submit original trade documentation supporting each payment. Now, offshore buyers purchasing from onshore Chinese suppliers and offshore sellers into the Chinese market can pay and receive RMB for their goods much more efficiently.
Michael Ormaechea, Head of FICC and Equities, Deutsche Bank, Asia Pacific said: “Today’s transaction marks a significant milestone in the ongoing internationalization of the Renminbi. Increased use of the Renminbi in cross-border trade settlement is a critical step in the adoption of the currency globally, and the simplification of payment procedures clearly paves the way for a shift towards RMB-denominated trade going forward.”
Deutsche Bank also announced today the introduction of the offshore RMB (CNH) as a new currency on its award-winning FX4Cash electronic cross-currency payment platform. This enables corporates for the first time to conduct cross-border trade in RMB electronically without holding an account in the currency. Deutsche Bank is committed to enhancing and developing this offering going forward to promote the use of CNH in payments via electronic channels.
Lisa Robins, Regional Head of Global Transaction Banking, Asia Pacific for Deutsche Bank said, "The streamlined process will ease the daily workload for corporate treasuries and encourage further adoption of cross-border RMB transactions. By leveraging our global network, corporates can now settle RMB cross border transactions more efficiently and also enhance their foreign currency risk management.”
Feng Gao, President of Deutsche Bank China added, “This is yet another breakthrough in the internationalization of the Renminbi that Deutsche Bank is proud to be a part of. The SRCP unlocks significant potential for the use of the RMB in global trade.”
Corporates interested in settling cross-border invoices in Renminbi via the SRCP need to work with and course their payments through PBOC Shanghai-approved banks participating in the pilot scheme.
Deutsche Bank is committed to the development of the RMB through all facets of foreign exchange, capital markets, credit trading and transaction banking. The bank was the first to allow electronic execution via its online trading platform, Autobahn FX, currently offering live 24x5 CNH pricing. Deutsche Bank also launched the first investable CNH bond index, and was among the first to execute onshore RMB FX option trades, CNH cross-currency swaps, and CNH forwards. Deutsche Bank’s dedicated CNH trading desk manages a significant amount of daily trading volumes, while regular, dedicated research (Deutsche Bank’s CNH Market Monitor) serves to keep investors and corporates informed on the latest developments and trends shaping the market.
*Deutsche Bank has been ranked #1 globally and in Asia by Euromoney’s definitive global FX survey for eight years running.
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About Deutsche Bank Deutsche Bank is a leading global investment bank with a substantial private clients franchise. Its businesses are mutually reinforcing. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With more than 100,000 employees in more than 70 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions, creating lasting value for its clients, shareholders, people and the communities in which it operates.
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