OCBC Bank of Malaysia says it will soon be offering corporate customers the opportunity to settle trade transactions, including letters of credit (L/Cs) and perform telegraphic transfers, in renminbi.

The bank says it is embarked on a renminbi trade settlement pilot programme intended to pave the way for transactions involving 273 eligible companies in China.

Exchange flexibility

So far, OCBC Bank's corporate clients can only settle in US dollars which, for many clients, means substantial levels of foreign exchange uncertainty.

The use of the renminbi in trade with China should provide Malaysian companies with additional flexibility to manage their foreign exchange exposures.

Services

The range of services involving renminbi trade settlement arrangements includes the issuance and payment of L/Cs as well as advising and confirming export L/Cs.

Other services include import and export documentary collection, payment guarantees and telegraphic transfers.

The bank's customers will also be able to receive inbound telegraphic transfers in renminbi.

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