Citigroup has introduced Yuan-denominated letters of credit (L/Cs) for importers and exporters in Latin America.

The bank says the move fits with its eagerness to cash in on the current push to make the Yuan a global currency.

Alternative financing

The new service will allow Latin American traders to work with partners in China to issue, receive and settle Yuan-denominated L/Cs.

Citigroup says the service will also provide traders with alternative means of financing trade and mitigating risks.

China desks

Citigroup's new L/C service follows the bank's recent establishment of a Latin America trade desk in Shanghai, which aims to link Chinese businesses with their counterparts in Latin America.

The bank now has China desks in more than eight countries, where it offers services to Chinese businesses.

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