Top Saudi bank launches RMB proposition
Riyadh, December 19, 2011
Saudi British Bank (SABB), an affiliate of HSBC Group, has launched a comprehensive Renminbi (RMB) proposition for its corporate customers, thus paving way for them to open RMB accounts at selected branches in the Kingdom.
This proposition will provide greater flexibility for Saudi corporates to manage their RMB working capital needs and foreign exchange risk, said the Saudi bank in a statement.
Launching the proposition, SABB managing director David Dew said, 'This will allow our customers to trade with China, subject to People’s Bank of China rules, and receive as well as pay in RMB without having to convert their currency exposure.'
The RMB proposition was launched in the presence of Y Wang, Economic & Commercial Counselor at the Chinese Embassy in Riyadh and over 50 distinguished clients, said a SABB statement.
Speaking at the gathering, Dew said, “Saudi Arabia and China are key players in the emerging global economy and trade between our two countries is set to expand at a rapid pace.'
'Leveraging the strength of our partner, SABB has put together a comprehensive RMB proposition keeping in mind the existing and future requirements of our customers.'
According to him, the ability to make payments and settle trade transactions directly in RMB should also enable Saudi Corporates to secure better trade terms from their Chinese suppliers.
Last year, China's total trade volume was just over RMB 20 trillion, of which RMB 506 billion was settled in RMB.
In the first half alone, RMB 950 billion of China’s total trade was settled in RMB. Given the rate of trade growth with China, it is predicted that more than half of the trade between China and emerging markets will be settled in RMB in the next 2 to 4 years.
Dew pointed out that SABB's global partner HSBC has had a continuous presence in mainland China for 146 years.
It is one of the largest investors amongst foreign banks in mainland China, having invested over $5 billion in select mainland financial services entities, he stated.
'With our strong presence at both ends, SABB / HSBC are ideally placed to assist businesses in the Saudi as they seek to expand their trade with the Far East in general and China in particular,' Dew added.-TradeArabia News Service