China’s ICBC issues renminbi product in US

(From China Daily)

China’s State-owned commercial lenders have made strong progress in promoting renminbi internationalization, with the currency falling 5.6 percent against the US dollar in the past year.

Industrial and Commercial Bank of China Ltd has issued its first renminbi-denominated certificate of deposit, allowing institutions to issue and clear financial products denominated in the Chinese currency in the US.

The CD, valued at 500 million yuan ($76.3 million), has a 31-day maturity and allows US borrowers to issue renminbi-denominated securities for trading and settlement purposes.

“The launch presents a significant milestone in meeting the growing demands of investors in the US and around the world to have access to the renminbi,” said Jiang Jianqing, ICBC’s chairman, in a statement.

“The renminbi is an increasingly important part of the global payments system, as payments in this currency are growing faster than overall global payments in all currencies.”

Between February and March, renminbi payments increased 18.5 percent in value compared with a 10.7 percent increase in payments of other currencies, according to the Society for Worldwide Interbank Financial Telecommunication, which said the renminbi is now the fifth-most active currency used for global payments. Read more

Categories: Asia Unhedged, China

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