Emirates NBD, a leading bank in the region, announced today the launch of CNY (Chinese Yuan Renminbi) currency-denominated account products that include Current Accounts, Call Accounts and Fixed Deposits.
The new products are expected to support SME customers with existing China affiliations to conduct easy trade settlements, provide them with an option of holding their balances in CNY currency, and hedge their currency risks. The new products can also be used by investors, both of Chinese origin and from other nationalities, to explore investment related opportunities in Chinese Yuan Renminbi.
The launch of Emirates NBD’s CNY currency-denominated products follows from the significant growth in bilateral trade between China and the UAE, which increased fivefold over the past 10 years to touch US$15.6bn (AED57.3bn) in 2012 from only US$3.12bn in 2002, according to a study by the UAE Ministry of Foreign Trade (MOFT).
“The enormous increase in UAE’s bilateral trade with China and the resultant fast growing Chinese-related business and resident population in the country, have turned the focus significantly on the world’s second largest economy,” said Suvo Sarkar, General Manager – Retail Banking, Emirates NBD. “Our market research indicates that this is the opportune time to introduce CNY currency-denominated liabilities products, as these will enable Emirates NBD to assist China affiliated traders and individuals to manage their CNY requirements and better leverage emerging market opportunities.”
For SME customers, Emirates NBD’s new CNY currency-denominated Current Account and Call account are non-interest bearing accounts that allow remittances from SMEs and non-individual customers through branches. Emirates NBD’s SME customers can strengthen their business ties internationally with the facility to bank in one of the world’s most popular currencies, and carry out their daily banking in CNY while still enjoying the features and benefits of an Emirates NBD account.
For Individual customers, the CNY Current account and Fixed deposit provide ideal solutions to transact and build savings in CNY in the medium to long term. Emirates NBD’s growing Chinese national customer base can now benefit from a robust online banking platform for their enquiry and transacting needs, in addition to online standing instruction facility, and competitive foreign exchange rates.
The Fixed Deposit scheme is being offered to both individuals and non-individuals, and can be availed for tenors of 1 month, 3 months, 6 months, 9 months or a year.
“The CNY currency-denominated account products will also enable affluent investors to diversify their currency portfolio and participate in the attractive China story by investing in a wide range of CNY denominated investments,” added Sarkar.
Emirates NBD’s introduction of CNY currency denominated liabilities products follows closely from the opening of its representative office in Beijing, China, and its successful bond sale denominated in Chinese currency, earlier last year. The move also serves to emphasise the bank’s focus in reaching out to potential Chinese customers, to leverage the opportunities offered by the second largest economy in the world.