JP Morgan now offers import letter of credit issuance and payment; export letter of credit advising, negotiation and confirmation; and standby letter of credit or bank guarantee issuance in RMB.
In September 2009, JP Morgan’s Hong Kong branch received authority to originate and receive payments in RMB to settle applicable trade transactions with approved corporates based in Mainland China.
JP Morgan Chase Bank (China), Shanghai Branch also has filed for authority to become a ‘domestic agent bank’ to provide RMB clearing services to JPMorgan Chase branches as well as financial institution clients in eligible countries.
Dani Cotti, global trade executive at JP Morgan Treasury Services, said: “With RMB International Trade Settlement, JP Morgan is able to help its Chinese corporate clients mitigate the higher level of foreign exchange risk they face as a consequence of recent turmoil in the domestic markets. These fluctuations have resulted in lower returns on foreign currency investments.”