Citi has launched Renminbi (RMB) letter of credit (L/C) facilities for Latin American-based importers and exporters.

The move comes in the wake of the launch of Citi Transaction Services' new Latin America Trade Desk in Shanghai, China, which serves as a link to Asia for Latin American clients.

New alternatives

The new facilities will allow clients in Latin America to issue, receive and settle RMB denominated L/Cs with their Chinese trading partners.

They also aim to provide clients with new alternatives for trade financing, trade processing and risk mitigation.

L/C preferences

According to a Citi statement, trade flows between China and Latin America are becoming increasingly diversified.

But L/Cs continue to be the most utilised method to settle transactions in Chinese-Latin American trading activity, according to the global bank.

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