Trading in Renminbi is expected to help Egyptian businesses secure more attractive terms when doing business with China.
Thursday 05, September 2019 BY KUDAKWASHE MUZORIWA
HSBC Egypt has started transacting in Chinese Renminbi for its corporate clients, following approval by the Central Bank of Egypt (CBE).
According to a local daily, the lender offers a complete solution for managing foreign exchange flows and trade settlement in Renminbi and through HSBC Egypt, corporates with exposure to the Chinese currency now have access to natural hedging of payables, receivables, assets, and liabilities as well as foreign exchange forward and options hedging solutions.
Bilateral trade between Egypt and China was $13.8 billion in 2018, a 27.7 per cent increase in 2017.
Yasser Yehia, HSBC Egypt’s Head of Global Markets, said that as Egypt continues to strengthen its trade and investment links with China, we are delighted to be able to offer our corporate clients in Egypt access to Renminbi, a currency that is rapidly emerging as global trade, investment and reserve currency.
The adoption of the Renminbi improves price transparency as Chinese counterparts do not need to include exchange or currency hedging costs in their pricing which will reduce trading costs, assisting companies to negotiate better-dealing terms and prices, said Helmy Ghazi, HSBC Egypt’s Managing Director and Head of Global Banking.
HSBC was the first bank to have the ability to settle Renminbi in six continents.