The new service will also assist the firms operating in Latin America to optimize international trade with Chinese importers and exporters by reducing cross-currency exchange risks and providing an alternative for trade settlement, risk mitigation and financing, claims Citi.
LCs remains to be the most popolar method to settle transactions in Chinese-Latin American trading activity and through Citi, firms in Latin America can now settle their trade transactions with their counterparties in China directly in RMB.
Commenting on the launch of new services in Latin America, Citi Transaction Services Latin America & Mexico region head Fernando Iraola said, "Connectivity is key to our strategy for the region. This is a great, innovative capability that will help accelerate the connectivity between Latin America and Asia, in this case China, for our clients in both regions.
The new solution follows the recent launch of Citi Transaction Services’ new Latin America Trade Desk in Asia, based in Shanghai, China, which serves as a link to the region for Latin American clients.
Citi’s Transaction Services supports over 65,000 clients in 95 geographies across the globe and as of the first quarter of 2012, the firm had average $377bn in liability balances and $13 trillion in assets under custody.
