HSBC today announced the completion of a renminbi-(RMB) denominated trade settlement transaction in Brazil, South America, expanding its currency settlement for the RMB across six continents.
In settling this transaction, HSBC stands as the leading bank globally offering customers RMB trade settlement services in Asia Pacific, Europe, Australasia, Africa, North America and South America. The ground-breaking transaction was closed for Groupo Tellerina, a retailer of house and decoration products.
HSBC’s market setting RMB-denominated transaction in Brazil demonstrates China’s growing economic influence globally and the evolving demand for the RMB as a settlement currency across all continents.
Peter Wong, HSBC’s chief executive for Asia Pacific, said: “China’s position within the global economy is developing rapidly and its growing influence is undeniable. We estimate that annual trade flows will cross US$2 trillion within five years, easily positioning the RMB as one of the top three currencies used in global trade. As the RMB becomes a major settlement currency, our global connectivity and unrivalled RMB experience provides customers with a significant advantage.”
John Coverdale, HSBC’s global co-head of Commercial Banking, said: “HSBC estimates the RMB will become one of the top three currencies used in global trade in the near future. We have RMB capabilities in all of China’s top 20 trading partner economies, and will continue to widen our scope to facilitate RMB-based remittances and Documentary Credits transactions in more countries and territories. Going forward, we will continue to roll out RMB services to both corporate and institutional customers in more countries worldwide.”
David Griffiths, CEO, of HSBC New Zealand, said: “Since undertaking New Zealand’s first renminbi transaction and opening our first RMB account, we’ve seen significant interest from businesses across New Zealand that are interested in taking advantage of the opportunities trading in RMB presents and staying ahead of their competition. With the expansion of renminbi denominated trade transactions we expect this interest to grow in the coming months.”
Following the expansion of the RMB trade settlement programme by the Chinese government in June 2010, HSBC has actively supported the internationalisation of China’s currency, extending its RMB capabilities to 33 markets across six continents.