ANZ to launch offshore RMB capability in Fiji

SUVA - Australia and New Zealand Banking Group Ltd (ANZ) on Monday launched offshore renminbi capability in Fiji, becoming the first bank in the South Pacific island countries to provide corporate and commercial customers with the ability to trade directly in renminbi (RMB), the Chinese currency, when doing business in China.

"This is a significant milestone to further support our customers in Fiji and (we) recognize that with the internationalization of the renminbi, we can further support our customers that are growing their business through trade with China, " Vishnu Mohan, ANZ's chief executive officer for Pacific and Fiji, said on the launching ceremony.

ANZ's renminbi offering provides its customers with a number of benefits, such as "an opportunity to obtain better pricing and contract terms" from suppliers on the Chinese mainland by setting in renminbi, and "shorter transaction times and cost savings, if both the sender and beneficiary settle RMB trade through ANZ", the bank said in a statement.

"Previously, most trade, payments or investment transactions with China have been conducted in foreign currency to China (i.e. US dollars). Now for the first time, businesses in Fiji can make payments into and out of China, trading directly in RMB," said the statement.

"We have found businesses that participate in offshore RMB trade can often negotiate more favorable terms with their Chinese partners when paying or receiving RMB in settlement of trade and services, and potentially widen their pool of suppliers," Liu Ligang, ANZ's chief economist for Greater China, commented.

ANZ has released its 2013 edition of the "RMB -- A New Global Currency" handbook, which states that settling trade transactions in RMB provides many benefits for both importers and exporters with trade ties to China, ranging from added convenience, cost and pricing advantages, to relationship benefits for both parties.