Deutsche Bank today announced that it has completed the first Singapore Dollar/Offshore Renminbi (SGD/RMB) spot trade to be cleared in Singapore, following the Monetary Authority of Singapore’s announcement that Renminbi (RMB) clearing in Singapore will be live as of May 27, 2013. The trade was executed on behalf of a Singapore-based commodities company.
In addition, Deutsche Bank has begun live pricing for offshore Renminbi versus local currency pairs across all of its onshore Asian locations (Hong Kong Dollar, Indian Rupee, Indonesian Rupiah, Korean Won, Malaysian Ringgit, Philippine Peso, Singapore Dollar, Taiwan Dollar, Thai Baht, etc.), and is the first bank in the market providing this comprehensive level of liquidity.
“As the world’s leading FX house, Deutsche Bank is proud to be the first to provide RMB liquidity versus local currency pairs across Asia,” said David Lynne, Deutsche Bank Head of Fixed Income & Currencies and Commodities, Asia. “Roughly 30% of China’s total trade volume is conducted with Asia Ex Japan. Direct local currency/RMB pricing will help encourage increased RMB-denominated trade settlement by facilitating corporate hedging of RMB exposure, unlocking yet more potential for the continued globalization of the RMB.”
Live clearing in Singapore represents a major milestone in the development of the Renminbi as Singapore is widely expected to serve as a gateway for the usage of RMB in Southeast Asia, as the primary financial, commodities, and currency trading hub for the region. China is the largest trading partner to ASEAN, and China’s imports from ASEAN nations have grown by almost 70% in the last five years, significantly outpacing growth of imports from the rest of the world.
Deutsche Bank’s Asia Pacific Head of Global Transaction Banking Lisa Robins added, “As trade flows between China and Southeast Asia continue to grow, it is natural that more companies will consider using the RMB as their currency of choice for bilateral trade. With Deutsche Bank’s expertise in RMB trade settlement and extensive footprint in ASEAN, we are well positioned to support our clients with their transactional needs in this part of the region, which we believe has tremendous potential.”
Deutsche Bank is the world’s largest provider of liquidity to global FX markets, having been ranked #1 globally and in Asia by Euromoney’s definitive global FX survey for the past 9 years running. As the world’s leading FX franchise, 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 of RMB trading 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 and China Market Perspectives) serves to keep investors and corporates informed on the latest developments and trends shaping the market.
For further information, please contact:
Deutsche Bank AG
Press & Media Relations
Phone: +852 2203 8434
Phone: +65 6423 8418
Karene Dufour Lo
Phone: +852 6336 7836
This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form 20-F of 15 April 2013 under the heading “Risk Factors”. Copies of this document are readily available upon request or can be downloaded from www.deutsche-bank.com/ir.
Deutsche Bank provides current information via several social media platforms. Follow our Tweets, view current videos and photos or subscribe to our news updates using your preferred channel. more