Landmark renminbi move for Latin America

Citi issues first ever letter of credit in the region denominated in the Chinese currency, allowing a client in the Peruvian retail sector to 'significantly improve conditions for its imports'
The internationalization of the renminbi has been something of an enigma since Beijing opened an offshore market in Hong Kong in 2010.
The internationalization of the renminbi has been something of an enigma since Beijing opened an offshore market in Hong Kong in 2010.

The internationalization of the renminbi has taken another big step forward with the issue of Latin America's first-ever letter of credit denominated in the Chinese currency,  Citi said on Monday.

In a statement, the US bank said it had issued the renminbi letter of credit for a Peruvian client in the retail sector, enabling it to “significantly improve conditions for its imports.”

Although banks in Latin America have long paid for goods and services using renminbi on behalf of their clients, including Citi since 2011, this latest move should provide companies in the region with greater flexibility in their dealings with Chinese counterparts.

...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222