Citi Reports Significant Uptake of Renminbi Offshore Services in EMEA
Building on the recent successful launch of its renminbi (RMB) cash management and trade solution in the UK, Citi has shown a significant growth of RMB transactions generated out of London and has expanded its offshore RMB offering into Nigeria, South Africa, Kenya, Cameroon and Zambia.
Citi’s offshore RMB solution includes RMB accounts, payments and collections capabilities, trade services and financing, foreign exchange (FX) transactions, hedging solutions as well as custody services.
The introduction of RMB capabilities in Africa will enable Citi’s clients to capitalise on the opportunities presented by the growth of commercial flows between China and Africa. According to the SWIFT RMB tracker, RMB flows accounted for 8.7% of total payments processed between Africa, China and Hong Kong as of July this year, up from 5.2% in January. In South Africa, RMB flows represented 10.5% of total payments in July, versus 6.0% in January.
Citi has joined the City of London Initiative on London as a Centre for RMB Business. The initiative seeks to provide leadership to financial markets on technical, infrastructure and regulatory issues relating to the RMB product and services in London. The significant and fast uptake of Citi’s UK–based offshore RMB solution is a clear demonstration of the increasing importance of the city of London as a key offshore centre for RMB business. Citi has shown a 40% growth of RMB transactions generated out of London since the beginning of the year while the number of UK-domiciled RMB account opened with Citi has increased by more than 80%. Recent onboarded clients include Brembo, the leading car brake manufacturer, who appointed Citi to open their RMB account and manage transactions with Chinese operations.
Giancarlo Cicuttini, global treasurer, Brembo, said: “As we expand our business in China, managing cash flows and associated FX exposure is critical to drive growth. We look forward to using Citi’s integrated domestic and offshore RMB solutions to better manage our RMB flows, achieve treasury efficiency and capture new growth opportunities.”