Citi China unveils e-solution for RMB cross border settlement

First of its kind.

In a release, Citibank China announced today that it will be the first international bank to launch a paperless processing solution for RMB cross border settlement. Citi’s solution follows a series of measures aimed at simplifying the cross border RMB settlement process announced by the People’s Bank of China (PBOC) on July 10, 2013.

By connecting Citi's electronic banking solution to the Balance of Payment Declaration (BOP) system operated by the State Administration of Foreign Exchange (SAFE), transactions can be completed entirely electronically, resulting in a reduction of manual error, processing cost and risk.

Clients benefit from significant efficiency gains as documents associated with a cross border RMB transaction can now be transferred electronically to Citi.

In addition, multinational companies and large local corporates will now be able to centralize cross border settlements through their shared service centers.

ZHEJIANG SUPOR CO., LTD (SUPOR) is the first of Citi’s clients to implement Citi’s automated solution, and has indicated that it has been an ideal solution for their shared services center to accelerate the RMB cross border settlement process.

Besides cost savings, the company is also able to reduce and mitigate operational risk from paper based documents.

Yigen Pei, Head of Treasury and Trade Solutions for Citi China, said, "We are delighted to partner with SUPOR to provide this innovative solution. As a leading global transaction bank, Citi China is proactively spearheading efforts to drive innovation around transaction service models.

The e-solution enables Citi to expand our service scope in China, makes it easier and efficient for companies to use RMB as a cross border trading currency, and therefore help to promote and facilitate RMB globalization. “