East West Banking (EastWest) of the Philippines is to start offering renminbi-denominated letters of credit (L/Cs) and other banking products.

The new banking services will be available from 8 August 2014 and respond to expanding trade relations between the Philippines and China.

Currency choices

EastWest has signed an agreement with the Manila branch of Bank of China for the new product offerings, which are aimed at retail and corporate clients doing business in China.

The bank is offering trade finance with L/Cs that offer clients a choice of settlement currencies.

EastWest can also provide forward renminbi rates for hedging against foreign currency risk according to a statement issued by the bank.

Burgeoning trade

China was the Philippines' biggest source of imports last year, with Chinese goods accounting for 13.01 per cent of all imported goods according to government data.

Conversely, sales of goods from the Philippines to China in 2013 made up 12.19 per cent of the Pacific islands' exports.

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