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, FX transactions, hedging solutions as well as custody services.
The introduction of RMB capabilities in Africa will enable Citi's clients to capitalize 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 is leveraging its global network as well as its long-standing presence in Africa, China and Hong Kong to allow its clients to make further inroads into south-to-south commercial flows and support their cross-border RMB business globally.
Citi is also pleased to announce it 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 utilizing Citi's integrated domestic and offshorshore RMRMB solutions to better manage our RMB flows, achieve treasury efficiency and capture new growth opportunities."
Rajesh Mehta, EMEA Head of Treasury and Trade Services said: "Our RMB offering is making significant progress across EMEA and we are keen to leverage the breadth of Citi's network to expand our RMB solutions throughout the region. We are delighted to join the City of London RMB initiative to further contribute to the success of London as a leading centre for international RMB business and look forward to assisting more multinational corporations in enhancing operational efficiency through the adoption of RMB in trade and cash management practices."