With this service, customers of Travelex can trade directly with authorized Chinese companies, which will help to strengthen trade relationships with Chinese suppliers and allow businesses to mitigate against foreign exchange risks.
Travelex Global Business Payments global managing director David Sear said that savvy businesses in Europe, US and Asia Pacific are already changing their approach on trade related cross border payments to benefit from this ability to pay Chinese companies in renminbi.
"Making renminbi payments available through GEO, provides easy access for a wide range of small businesses, corporates and partners, who previously had to rely on a relatively small number of major banks," Sear said.
Travelex will be leveraging its GEO Global clearing Network to send renminbi payments. Its GEO Network is made up of Travelex owned bank accounts in more than 70 countries around the world of which China is a new addition.
According to the People’s Bank of China, cross-border trade settled in renminbi under new scheme regulations is growing rapidly, reaching $78bn in 2010 and 2011 volumes having already exceeded last year’s total in April.
