More banks to offer renminbi-denominated products in the Philippines
Posted on January 18th, 2010
Because of the increasing volume of transactions in the Philippines, many banks in the Philippines are planning to offer products and services denominated in Chinese yuan or renminbi to their clients in the near future. According to Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr., these banks are looking to offer renminbi-denominated products and services due to the country’s strengthening partnership with China.
“Renminbi business is expected to grow in 2010 even further as more banks become acquainted with the business opportunities in the Chinese currency,” Tetangco said. He also cited the growing partnership between Manila and Beijing particularly in the areas of trade tourism, education, agriculture and other economic sectors.
In the last quarter of 2009, five local banks have already launched their renminbi deposit products. One of them already registered a 10-fold increase in the volume of transactions in the last two months of 2009.
Tetangco said that the settlement of renminbi banknotes in the Philippines amounted to 174.6 million Chinese yuan last year from only 0.5 million Chinese yuan in 2008.
The central bank’s Monetary Board approved the inclusion of the renminbi in the list of currencies convertible with the BSP in December 2006. In 2008, it provided direct conversion of the Chinese currency in recognition of its heightened role as the currency of choice for trade within the region.
The growth of the Chinese yuan was brought about by the effort of the Chinese government which has taken steps to boost the use of its currency among countries in the region as part of its broad aim to make the renminbi an “international currency.” Different Chinese entities have since signed up for swap agreements with various counterparts in the region mainly for trade purposes.
