ANZ today became the first bank in the Pacific to provide its corporate and commercial customers in Fiji the ability to trade directly in Renminbi or Chinese Yuan (CNY) when doing business in China.
ANZ CEO Pacific and Fiji, Vishnu Mohan, said: “This is a significant milestone to further support our customers in Fiji and recognises that with the internationalisation of the Renminbi we can further support our customers that are growing their businesses through trade with China.
“Total trade between China and the Pacific is significant and it’s growing rapidly. Last year, it reached US$2.1bn which was eight times greater than in 2000, and 20 per cent larger than in 2010,” Mr Mohan said.
ANZ’s RMB offering further enhances its reputation as a super regional bank and provides its customers with a number of benefits, including: an opportunity to obtain better pricing and contract terms from suppliers in mainland China by settling in CNY; and shorter transaction times and cost savings, if both the sender and beneficiary settle CNY trade through ANZ.
Previously, most trade, payments or investment transactions with China have been conducted in foreign currency to China (i.e. US dollars). Now for the first time, businesses in Fiji can make payments into and out of China, trading directly in CNY/RMB.
Speaking at ANZ’s launch today, Li-Gang Liu, ANZ Chief Economist, Greater China, commented: “We have found businesses that participate in offshore RMB trade can often negotiate more favourable terms with their Chinese partners when paying or receiving RMB in settlement of trade and services, and potentially widen their pool of suppliers.”
ANZ has been providing offshore RMB products and services for more than 1,200 customers since the launch of the cross-border RMB trade settlement scheme back in 2009.
ANZ also released its 2013 edition of the ‘RMB – A New Global Currency’ Handbook which states that settling trade transactions in RMB provides many benefits for both importers and exporters with trade ties to China, ranging from added convenience, cost and pricing advantages, to relationship benefits for both parties.