The Saudi British Bank- SABB has announced the launch of a comprehensive Renminbi (RMB) proposition for its corporate customers who will now be able to open RMB accounts at selected SABB branches in Saudi Arabia. SABB’s RMB proposition was launched by David Dew, Managing Director, SABB in a ceremony at the SABB Head Office in the presence of His Excellency Mr. Y Wang, Economic & Commercial Counselor at the Chinese Embassy in Riyadh and over 50 distinguished clients.

This will allow SABB customers to trade with China, subject to People’s Bank of China rules, and receive as well as pay in RMB without having to convert their currency exposure. This proposition will provide greater flexibility for KSA Corporates to manage their RMB working capital needs and foreign exchange risk. The ability to make payments and settle trade transactions directly in RMB should also enable Saudi Corporates to secure better trade terms from their Chinese suppliers.

Last year, China's total trade volume was just over RMB 20 trillion, of which RMB 506 billion was settled in RMB. In the first half of this year alone, RMB 950 billion of China’s total trade was settled in RMB. Given the rate of trade growth with China, it is predicted that more than half of the trade between China and emerging markets will be settled in RMB in the next 2-4 years. China remains the Kingdom's fastest growing trading partner and the launch of SABB’s RMB proposition marks an important milestone in ensuring that SABB customers are and will be ready to take advantage of this emerging scenario.

HSBC, SABB's global partner, has had a continuous presence in mainland China for 146 years. It is one of the largest investors amongst foreign banks in mainland China, having invested over US$5 billion in select mainland financial services entities. The network in mainland China comprises over 100 outlets including 24 branches. Apart from this, HSBC has significant presence in Asia Pacific where RMB is increasingly emerging as one of the major trading currencies.

Speaking on the occasion, David Dew, Managing Director of SABB, said: “The Kingdom of Saudi Arabia and mainland China are key players in the emerging global economy and trade between our two countries is set to expand at a rapid pace. Leveraging the strength of our partner, SABB has put together a comprehensive RMB proposition keeping in mind the existing and future requirements of our customers. With our strong presence at both ends, SABB / HSBC are ideally placed to assist businesses in the KSA as they seek to expand their trade with the Far East in general and China in particular.”