Kuala Lumpur, 19 January 2011
Hong Leong Bank ("HLB") recently closed three Chinese Renminbi ("RMB") trade transactions with the Industrial and Commercial Bank of China Limited (Malaysia) Berhad These transactions are also the first RMB trade settlements by a Malaysian local bank with China."At present, HLB has completed three RMB transactions and al though the amount may be modest, we are excited with the potential of more transactions to come," said Ms Yvonne Chia , Group Managing Director, Hong Leong Bank.
present, China is the world's largest exporting county and the second largest economy in the world. With the rise of China in the global economy, the Chinese Government has issued a series of economic policies to promote international use of the RMB. One of these policies is the pilot programme for RMB cross-border trade settlements which allows Mainland Chinese exporters and importers to settle trade in RMB with all of China 's trading partners
In August 2010, China began to allow the RMB to trade against the Malaysian Ringgit on the inter-bank foreign exchange market to allow cross-border trade settlements in the RMB to expand and reduce costs of remittances.
"With the increasing significance of RMB in the global economy and with Malaysia being the largest among the ASEAN nations and China's top eight trading partner in 2009, the Bank can no longer ignore the importance of the RMB in terms of its share of world trade," added Ms Chia. "As momentum gains, our trade customers will inevitably be more interested to invoice in RMB," she concluded.However, despite the series of policy changes to increase the uses of RMB outside China , restrictions still remain for the use of RMB for non-trade cross-border transactions with China .
"This means that customers (either retail or corporate customers) will have to be mindful of the purposes of RMB transactions with counter-parties in China and are advised to consult with their bankers before they plan to pay or receive payments in RMB. At HLB, we understand these requirements better and have the expertise to guide our customers," she concluded.
HLB offers a complete suite of RMB payments to Mainland China, RMB accounts and trade services. For more information, contact Ms Looi Cheng Yee (03-2169 2485) or Ms Jessica Tan (03- 2169 2749) or visit www.hlb.com.my
-END-Press Release - 19/01/2011