SEB Launches Offshore Renminbi Services
SEB has launched a set of services in offshore renminbi (RMB) for cash management, trade finance and foreign exchange (FX). This will give SEB’s customers access to the new offshore RMB market that started in July this year and that is set to become one of the world’s most important markets in the years ahead.
Foreign exporters and importers will now be able to invoice in RMB, giving several advantages including improved margins, as the RMB is currently trading at a stronger rate than the onshore Chinese yuan (CNY). For investors this is the birth of a new market and in the years to come the RMB is expected to become an important part of every large investment portfolio. SEB can now help investors who wish to gain exposure to the yuan and who do not have access to the CNY or cannot use the non-deliverable forward markets (NDF).
“Since July 2010, the RMB is a fully convertible currency. This opens up a range of new possibilities for organisations that have cross-border trade with China, and for investors and for foreign central banks to use RMB as a reserve currency,” said Petter Sandgren, head of trading, SEB Asia. “The RMB is set to become an international currency over the next few years, and we have developed our new services in response to this. China is an increasingly important market for our customers, and together with our existing offering from our SEB branch in Shanghai we can now provide them with a comprehensive range of services in China, both onshore and offshore.”