Business

Thursday July 16, 2009

Public Bank partners BoC


KUALA LUMPUR: Public Bank Bhd has teamed up with Bank of China (M) Bhd (BoC) to launch yuan trade settlement service to facilitate Malaysia’s yuan trade settlement with China.

This follows the recent announcement of the commencement of the cross-border trade transactions in yuan by China on July 6 in Shanghai.

In a joint statement yesterday, the banks said initially the service would cover Shanghai, Guangzhou, Dongguan, Zhuhai and Shenzhen.

“Only designated and eligible enterprises in China are allowed to settle their cross-border trade transactions for both imports and exports in yuan,” they said.

The banks said the advantages of cross-border yuan transactions included minimised foreign exchange risk, locked-in financial costs and simplified estimation of corporate profit, workflow and processes.

“Companies which do not have income denominated in foreign currencies can benefit from the service as it can assist in minimising foreign exchange losses.”

They said the yuan trade business could also be conducted in Hong Kong and Macau as well as Indonesia, the Philippines, Singapore, Thailand, Brunei, Vietnam, Myanmar, Laos and Cambodia.

Public Bank managing director Tan Sri Tay Ah Lek said the initiative, which covered open account transactions, documentary collections, letters of credit and bank guarantees, would enable the bank to reach a wider spectrum of the business communities that did businesses with China. — Bernama


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