Citi has recently added the renminbi (RMB) to its Multi-Currency Notional Pooling service in London.
Citi's multi-currency notional pool provides a liquidity management tool to gain cash flow flexibility and manage FX costs more efficiently among different currencies by notionally offsetting cash balances without performing FX trades.
This extension of Citi's existing pooling capabilities responds to the growing internationalisation of the Chinese currency and brings the total number of currencies available in Citi's multi-currency pooling offering to 26. The Bank is applying its global presence and global liquidity management expertise to help corporate treasurers seize the opportunities arising from the continued opening of the China market and its currency. It has already implemented this solution for a multi-national corporate client.
Citi launched its EMEA RMB cash and trade offering in June 2012. Over the past year, the Bank has seen a significant increase in the volume and value of cross-border RMB transactions generated in London and other centres, with more and more multi-national companies holding offshore RMB cash balances to support trade flows in the currency. Citi recently announced the significant surge it is seeing in RMB-related transactions in Singapore.
"By implementing this RMB offshore multi-currency notional pool, we can now help our clients integrate RMB deeper into their cash and liquidity management processes," said Rajesh Mehta, EMEA Head of Treasury and Trade Solutions, Citi Transaction Services.
"Citi is an active supporter of RMB internationalisation and, as a leading global cash and liquidity management provider, we are committed to helping our clients gain better access to the Chinese market by embracing RMB in their treasury management practices."