HSBC Bank Egypt has started dealing in China's yuan, or renminbi (RMB), for its corporate clients following an approval from the Egyptian central bank, it said on Wednesday. The announcement adds to HSBC's RMB capabilities, which stretch across 50 markets. HSBC was the first bank to have the ability to settle RMB in six continents. The decision to deal in RMB is buoyed by the significant trade growth between Egypt and China. In 2018, bilateral trade between the two countries rose 27.7 percent year-on-year to $13.8 billion. Trading in RMB can help Egyptian businesses secure more attractive terms when doing business with China, HSBC Egypt said in a statement. As Egypt continues to strengthen its trade and investment links with China, HSBC decided to offer its corporate clients in Egypt access to RMB, head of global markets Yasser Yehia said. RMB is "a currency that is rapidly emerging as a global trade, investment, and reserve currency. We are already seeing strong interest from clients in RMB, with five deals completed at launch.", Yehia added. According to the statement, HSBC offers a complete solution for managing foreign exchange flows and trade settlement in RMB. Through HSBC Egypt, corporates with exposure to RMB now have access to natural hedging of payables, receivables, assets, and liabilities as well as FX Forward and Options hedging solutions. "Using RMB brings multiple benefits as it reduces foreign exchange risk, improves liquidity and cash management and facilitates trade with suppliers and customers in China who prefer to settle in RMB." said managing director and head of global banking Helmy Ghazi. "This development also improves price transparency as Chinese counterparts do not need to include exchange or currency hedging costs in their pricing which will reduce trading costs, assisting companies to negotiate better dealing terms and prices," Ghazi added. Given its universal banking model and global network, HSBC seeks to meet all the financial needs of its clients who are engaging in Belt and Road-related business, said HSBC Group general manager, deputy chairperson and chief executive of HSBC Bank Egypt, Jacques-Emmanuel Blanchet. "The comprehensive strategic partnership between China and Egypt have witnessed an unprecedented push in 2018, we believe the Belt and Road will create a wealth of opportunities for our clients in Egypt …," Blanchet said. HSBC looks forward to providing its clients with outstanding services across financing, advisory, risk management, and transaction banking.
