UOB adds forex solutions in China to support trade finance needs

One of the solutions enables direct RMB and Thai baht trade.

United Overseas Bank (UOB) rolls out the addition of two foreign exchange (FX) solutions to its cross-border financial products and services in China.

The first solution enables onshore banks in China to trade directly with banks overseas via the R5-SHCH Connect without having to source for counterparties and to negotiate trade prices individually. UOB is the first foreign bank to execute offshore Renminbi (RMB) transactions using R5-SHCH Connect, an FX trading platform set up as part of a partnership between the Shanghai Clearing House (SHCH) and London-based financial technology firm R5FX Ltd. Banks registered for the R5-SHCH Connect service can conduct clearing for spot transactions in the US dollar against the Hong Kong dollar, the British pound against the US dollar and the euro against the US dollar. The service is expected to extend to other currencies and derivatives in the future.

The second new FX solution is direct trading between the RMB and the Thai Baht. UOB is among the first market makers able to support direct trading for its clients through the China Foreign Exchange Trade System (CFETS). CFETS launched direct trading between the RMB and the Thai Baht on 5 February 2018.

Mark Yang, head of global markets of UOB (China), said, “Given our strong Southeast Asian presence, we are one of the most active market makers of the Thai baht in the region. With our RMB-Thai baht direct trading service, our clients in China can not only meet their overseas financing needs but can also enjoy easier access to a wider range of Thai baht solutions including spot, forward and swaps, while also managing their related FX costs and risks.”