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Yuan in the bank
The demand for Chinese currency is growing in the Far East
The branch of VTB Bank in Shanghai fell into the stream of dynamic development of Russian-Chinese relations. This is the only Russian bank in China that has a financial license, which means a priority right to work with the national currencies of the Russian Federation and China.
The VTB branch in Shanghai has been a conductor of Russian business in China since 2008. It so happened that the internationalization of the ruble in China, VTB began almost simultaneously with the active actions of China to promote its own currency in international payments. More than half of Chinese clients have opened accounts in rubles at the branch, financial institutions of the PRC are actively using ruble correspondent accounts. Market launch of this product has been prepared since the opening of the branch within three years. And now its relative maturity is visible, it becomes a conscious choice for many clients and partners of the bank in the PRC.
Since the launch of direct quotations of the ruble-yuan on the domestic foreign exchange market of China in 2010, VTB has received the status of a market-maker for the ruble-yuan pair on the Chinese Currency Exchange and is leading in terms of amounts and volumes of currency trading. For 2013, 1047 operations were performed for a total of 19,4 billion rubles. At the same time, for the first four months of the 2014 of the year, 448 operations totaling 23,2 billion rubles were already carried out. In August, 2013 was obtained a license to conduct business with residents of the PRC in the national currency of China, which made it possible to expand the branch product line. In April, the branch 2014 received permission to conduct international operations in the Chinese yuan, and this allows the branch to fully serve the trade and economic relations of Russia and China in national currencies.
The operational goals of VTB Group's business in China for the next 3 year are the development of international settlements in the national currencies of China and Russia, the start of the investment business in Shanghai and the expansion of the client base.
Interest in the yuan is growing among Russians in the Far East.
"So, the volume of payments in RMB in Khabarovsk branch of VTB for 2013. Amounted to 80,6 million yuan (equivalent to 13,3 million dollars), growth for the year - 43%. Calculations in RMB are carried out by forest exporters, importers of spare parts, consumer goods, building materials, as well as travel companies. This is a small share in the total volume of payments for foreign trade contracts (less than a percent), but the dynamics of such calculations are impressive, "commented EastRussia.ru managing director of Khabarovsk branch of VTB Evgeny Orlov.
“The next step in the development of settlements in yuan is complex operations: letters of credit, hedging. There is interest in these instruments, we have implemented two transactions with letters of credit in yuan, in the elaboration of a hedging transaction, ”E. Orlov continued.
"In our region, focused on cooperation with the PRC, there is always an active demand for Chinese currency from individuals - for shopping tours and tourist trips. According to our data, the sales of cash currency we see,then the demand for the yuan is also subject to the influence of volatility - in particular, in the 1 quarter of this year, sales of yuan increased threefold compared with the previous, 4 quarter of the year 2013. During this period, people bought the yuan “for the future” - just like a dollar, ”summed E. Orlov.