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Fiji Time: 5:23 PM on Friday 25 April

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RMB currency to ease trade settlement, business deals

Ropate Valemei
Tuesday, February 26, 2013

FOR the first time, businesses in Fiji can now trade and make payments into and out of China in Chinese Yuan rather than US dollars.

This was after ANZ launched its offshore Renminbi (RMB) capabilities for corporate and commercial customers doing business with China at the Holiday Inn in Suva yesterday.

The bank said it was the first in the Pacific to offer RMB banking solution to customers, considering RMB was now an international money transfer currency for trade settlement.

ANZ chief executive officer Pacific and Fiji, Vishnu Mohan said the availability of the RMB banking solution was a significant milestone that expanded their capabilities to support Chinese customers in building and growing their business.

"Despite the increasingly uncertain global outlook, the internationalisation of the RMB continues to be an important global event which will dominate markets for the next decade," Mr Mohan said.

At the launch last night, ANZ chief economist for Greater China, Dr Li-Gang Liu said businesses that participated in offshore RMB trade often negotiated more favourable terms with their Chinese partners when paying or receiving RMB in settlement of trade and services, and potentially widen their pool of suppliers.

Previously, most trade payments or investment transactions with China had been conducted in US dollars.

Dr Li-Gang Liu was the keynote speaker at the event