RBS’s Yi Xiong advises CT on processes for opening a renminbi special account for cash concentration cross-border in the Shanghai free trade zone (FTZ) and account management going forward.
China’s PBOC will allow cross-border renminbi pooling for multinational corporates, though the need for distinctions between onshore and offshore renminbi for corporate treasurers remains.
Utilising subsidiaries’ cash at the group level has become vital as more Asian corporates move onto the international stage. Bank independence is viewed as the Holy Grail of treasury.
Valspar has added renminbi to its global cash pool currencies through a dividend payment to its US headquarters and has future plans for the Shanghai free trade zone (FTZ).
Dutch hydraulic-cylinder maker Hyva transacted its first renminbi inter-company loan from China to its headquarters, completing its application in just two-and-a-half weeks.
China will likely free up deposit rates within two years, hopefully helping end the need for corporates to park cash with dodgy wealth management products, economists believe.