Citi Reports Significant Uptake of Renminbi Offshore Services in EMEA and Expands Renminbi Capabilities Across Africa
London - October 16, 2012 – 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 Center 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 center 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 offshore RMB 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 center 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.”
 WorldLink RMB payments processed from January 2012 to August 2012 vs January 2011-August 2011
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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About Citi Transaction Services
Citi Transaction Services, a division of Citi’s Institutional Clients Group, offers integrated cash management, trade, and securities and fund services to multinational corporations, financial institutions and public sector organizations around the world. With a network that spans more than 95 countries, Citi’s Transaction Services supports over 65,000 clients. As of the third quarter of 2012, it held on average $415 billion in liability balances and $12.8 trillion in assets under custody
About the City of London initiative on London as a center for renminbi business
The City of London initiative on London as a center for renminbi business was launched on 18 April 2012. It aims to develop London’s position as the leading western hub for international renminbi (RMB) business - and boost the RMB’s wider international use for trade and investment. The initiative is facilitated by the City of London Corporation, and the current members are Bank of China, Barclays, China Construction Bank, Citi, Deutsche Bank, HSBC, Industrial and Commercial Bank of China, JPMorgan, Royal Bank of Scotland and Standard Chartered, with observers from HM Treasury, the Bank of England, and the Financial Services Authority. The initiative seeks to provide leadership to the wider financial markets on technical, infrastructure and regulatory issues relating to the RMB product and services in London. It also advises HM Treasury on maximising London’s capacity to trade, clear and settle RMB and articulates practical next steps and long-term aims for the further development of the RMB market in London. Additionally, the group advises HM Treasury and other UK authorities on any financial stability concerns members may perceive. More information is at www.cityoflondon.gov.uk/renminbi