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Citi to be First Bank in China to Launch Multi-Currency Notional Pooling with RMB Capability

Shanghai – Citibank (China) Co., Ltd. (“Citi China”) announced the launch of a multi-currency notional pooling with RMB capability, making it the first bank in China to offer a tool of this kind under its liquidity management product offering.

As one of the most advanced liquidity management solutions available to companies, multi-currency notional pooling is widely used at international financial centers such as London and Singapore. Often adopted by corporate treasury centers to efficiently manage cash flow from a centralized location, the solution can also help corporates manage cash in multiple currencies as a single position without altering FX exposures or having to perform FX swaps.

Yigen Pei, Country Head of Citi’s Transaction Services for China, said, "Citi is very excited to be launching this milestone offering to our clients in China. The multi-currency notional pooling feature is a leading cash management tool and will significantly enhance the efficiency of our clients’ liquidity management. The introduction of RMB capability further underlines the importance of RMB as a strategic currency in treasury management and should also help promote Shanghai’s position as an international financial center.”

With the multi-currency notional pooling solution, each account retains autonomy within the pool. The currency and account type of balances do not change and balances in different currencies are not co-mingled, but notionally aggregated. By doing so, corporate treasury centers can effectively leverage internal funding across currencies, and in turn, benefit from FX cost reductions and increased operational efficiencies.

 

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About Citi
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.

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