HONG KONG Jan 20 Citi said on Monday it
had launched an automated RMB cross-border pooling solution for
its clients in the China (Shanghai) Free Trade Zone, a move that
could help multinational companies optimise their cash
management and enhance capital efficiency.
The solution enables companies to automatically sweep RMB
between their onshore and offshore entities freely, without
providing supporting documents or applying for approvals on a
Citi's cross-border yuan sweeping solution was pioneered for
Roche, a leading European pharmaceutical company, which marks an
important step in the ongoing financial development in the free
"We are using state-of-the-art global concentration
platforms to address clients' local and cross-border RMB needs,
enabling them to capitalize on opportunities that evolving
regulatory reforms bring," Amol Gupte, Citi's Asia Pacific head
of Treasury and Trade Solutions, said in a statement.
China launched the Shanghai free trade zone in late
September and officials promised a far more open and streamlined
environment for foreign firms to do business there, along with
the relaxation of policies for a raft of service sectors.
A batch of banks including Deutsche Bank,
Citibank, DBS, Hang Seng Bank, HSBC
and Bank of East Asia have received
approvals to start operations in the pilot zone.
HSBC said last week it had offered cross-border RMB sweeping
service for Dover, a manufacturer of diversified industrial
products, to help it deploy funds more efficiently between its
overseas and domestic affiliates.
Beijing is stepping up efforts to open up domestic financial
markets and lift the global status of its currency, aiming to
reduce its reliance on the U.S. dollar as the world's
With a slew of policies introduced to promote the "redback",
the yuan already overtook the euro to become the second-most
used currency in trade finance, data from global transaction
services organisation SWIFT showed.
The pace is expected to accelerate. Shanghai Vice Mayor Tu
Guangshao said at a financial forum last week that the central
bank would roll out detailed policies to develop the free trade
zone in the first quarter and material development is expected