ICBC to enrich products for developing Qatar offshore RMB market

Commercial Bank vice-chairman and managing director Hussein Alfardan and CEO Abdulla Saleh al-Raisi at the formal opening of the Middle East’s first Renminbi Clearance Centre in Doha yesterday.   Right: Jianqing: Expanding network.By Santhosh V Perumal/Business ReporterIndustrial and Commercial Bank of China (ICBC), Doha branch, will enrich the products for constructing and developing Qatar offshore Renminbi (RMB) market as part of a strategy to actively promote the cross-border use of China’s currency in the Middle East region.“Upon being designated as the RMB clearing bank in Qatar, Doha branch (will) enrich the products for constructing and developing Qatar offshore RMB market,” ICBC chairman Jiang Jianqing said at the launch of Qatar RMB Centre in Doha yesterday.With the deep development of trade and economic co-operation between China and Qatar, ICBC will become a great bridge to serve the trade and economic exchanges between the two countries and make a new contribution to promoting the co-operation between China and Qatar as well as the Middle East and North Africa, he said.In recent years, with wider and deeper co-operation between China and Qatar in economy, trade and energy, Doha branch, by seizing the “strategic” opportunity for cross-border use of RMB, has actively developed the offshore RMB business, and formed a diversified RMB product and service system comprising RMB exchange, RMB documents/guarantees, RMB deposits, RMB trade finance, overseas loans, issue of large-denomination certificates of deposit in offshore markets, offshore market borrowings, as well as RMB foreign exchange settlement and sale, according to him.“With Doha Branch becoming the local RMB clearing bank, the bank will further expand its global RMB clearing network spanning multiple time zones, and actively promote the cross-border use of RMB in the Middle East region,” Jianqing said.As the first Chinese bank to set up a local institution in the Middle East, ICBC now has the largest number of institutions and business scale in the region among its Chinese peers, he said, adding so far, it has established institutions in Qatar, the UAE, Saudi Arabia and Kuwait.Until now ICBC has set up branches in 42 countries and regions and a global service network covering six continents and major international financial centres.Since the test cross-border RMB settlement launched in 2009, with the joint efforts of policy support and market demand, the process of RMB internationalisation has been promoted rapidly, the ICBC chairman said.By the end of 2014, RMB settlement business has covered more than 98% countries and regions all over the world, which makes RMB second largest trade financing currency, fifth payment currency, seventh reserve currency and ninth foreign exchange currency, he highlighted.