Since the launch of the HSBC direct trade settlement in Chinese Renminbi (RMB), the interest shown by local importers trading with China in RMB has been very positive and encouraging. Local businesses are exploring the possibility of obtaining quotes in RMB for the goods on order that were previously being settled in either USD or EUR.
This is a significant change because, in a number of cases, quotes have been reduced and discounted, reflecting that the Chinese exporter does not have to bear foreign exchange costs since the transaction is settled directly in China’s own currency, the RMB. This was experienced by a local business transacting through HSBC Malta via an RMB cross-border account. The formalities to transact through an RMB account with HSBC Malta are relatively simple, once the requisite details of settlement are in hand. In this respect, a dedicated Relationship Manager and Payments or Trade specialists at HSBC, will be able to provide the necessary support.
HSBC’s RMB proposition enables local importers to develop and take advantage of business opportunities in China. Maltese businesses trading in RMB stand to benefit from more straightforward currency conversions, increased competitiveness through the capacity to meet Chinese suppliers’ requirements, strengthening trade relations, and access to a far wider customer base.
“HSBC Malta is the only bank in Malta to provide a full service proposition in Chinese Renminbi direct settlement. Through this service, Maltese and Chinese businesses stand to benefit from potentially lower foreign exchange transaction costs and currency fluctuation risks,” said HSBC Malta’s Head of Global Markets Stephen Pandolfino. “This, in turn, also benefits Maltese businesses by enabling them to negotiate better terms of trade for the goods and services they are procuring.”
China’s economic growth in the last few years has secured its place as one of the key pillars of the global economy, enabling the RMB to become one of the fastest growing currencies in the world. HSBC Group offers RMB settlements in 59 countries, including Malta.
“As Chinese businesses are increasingly looking to trade in their own currency, more Maltese companies will be availing themselves of HSBC Malta’s RMB service proposition. This allows Maltese businesses to open accounts in RMB, and enables the direct settlement of trade transactions in RMB through transfers as well as a wide range of trade finance instruments, including letters of credit, and guarantees,” said HSBC Malta Head of Trade and Receivables Finance, Gaetano Sammut.
Offering solutions for payments in RMB is a natural benefit of the HSBC Group’s presence in China and Hong Kong, its deep knowledge of this market, and its global network of customers who want to trade in the Renminbi.
For more information visit any of HSBC’s branches in Malta and Gozo or visit HSBC Malta’s website at www.hsbc.com.mt/commercialbanking.
Photocaption: HSBC Malta improves the competitiveness of businesses in Malta by facilitating direct trade with China in Chinese Renminbi (RMB) currency.