With this service, Commerzbank provides a whole range of documentary foreign transactions in RMB – the opening and settlement of letters of credit, the settlement of collection, and the issuance of bank guarantees.
The bank said the new service is the addition to the RMB account services that it already provides through its branches in Shanghai, Beijing and Hong Kong.
By using RMB trade settlement, German companies, who do business with Chinese corporates, can also take advantage of pricing benefits, hedge the currency exchange rate accordingly with Commerzbank, and consolidate and develop their market position.
"This new service is a very valuable addition to our offering for corporate customers participating in the increasingly important Sino-German business relationships," explained Martin Fischedick, Divisional Board Member Corporate Banking at Commerzbank.
With the expansion of the RMB Settlement Scheme (RTS) in July 2010, the Chinese government allowed companies in 20 provinces of China to conduct import and export transactions in RMB, as well as make and accept cross-border payments worldwide in RMB on the basis of a business transaction with a foreign country.
