{"id":50352,"date":"2014-12-01T12:00:37","date_gmt":"2014-12-01T12:00:37","guid":{"rendered":"https:\/\/www.transcend.org\/tms\/?p=50352"},"modified":"2015-05-05T21:27:15","modified_gmt":"2015-05-05T20:27:15","slug":"russias-biggest-bank-launches-financing-in-chinese-yuan","status":"publish","type":"post","link":"https:\/\/www.transcend.org\/tms\/2014\/12\/russias-biggest-bank-launches-financing-in-chinese-yuan\/","title":{"rendered":"Russia\u2019s Biggest Bank Launches Financing in Chinese Yuan"},"content":{"rendered":"
\"Reuters<\/a>

Reuters \/ Kacper Pempel<\/p><\/div>\n

Sberbank, Russia\u2019s largest lender, will be the first bank in the country to start issuing credit guarantees denominated in Chinese yuan. The new yuan-based letters of credit ensure payments between buyers and sellers, with the bank acting as a router.<\/p>\n

This will make payments for import contracts settled in yuan more seamless, the bank said in a statement<\/a> Tuesday.<\/p>\n

\u201cAn important aspect of these transactions is that post-import financing was attracted in Chinese yuan, which is especially relevant given the existing market environment,\u201d<\/em> the statement says. \u201cStarting transitions in RMB will allow customers to not only meet current funding requirements and settlements, but also to continue active cooperation with Chinese suppliers.\u201d<\/em><\/p>\n

Letters of credit are considered secure and convenient in international trade, as they are designed to protect both buyers and suppliers, and offer a good alternative to advance payment. This can overall help expedite the entire payment and shipping processes.<\/p>\n

\u201cThis is a complex transition in which the letters of credit in Chinese yuan (RMB) have been opened on behalf of one of our most major corporate clients,\u201d<\/em> the statement said.<\/p>\n

The decision is part of an overall surge in Chinese issuance of letters of credit since 2012, as Chinese investors themselves are partial to using letters of credit in transactions.<\/p>\n

\u201cWe recognize the positive trend of strengthening partnerships with Chinese banks, especially after the signing of several agreements<\/a> at the APEC summit, held this November in Beijing. At the moment we are seeing a growing interests in Russian companies in local currency settlements, in particular the Chinese yuan, and of course, rubles,\u201d<\/em> Andrey Ivanov, director of trade finance and correspondence relations at Sberbank CIB, said, Vesti reported.<\/p>\n

In October, Moscow\u2019s and Beijing\u2019s central banks signed a three-year ruble-yuan currency swap deal worth up to $25 billion, with the aim of boosting trade using national currencies and lessen dependence on the dollar and euro.<\/p>\n

Russia turned to China, the world\u2019s second largest economy \u2013 and largest<\/a> by some economic indicators – after the US and EU imposed sanctions on Russia over the events in Ukraine earlier this year.<\/p>\n

Overall trade between Russia and China increased by 3.4 percent in the first half of 2014, reaching $59.1 billion<\/a>. The two neighbors expect annual trade to hit $200 billion<\/a> by 2020. China is Russia\u2019s second-biggest trading partner, after the EU.<\/p>\n

READ MORE:<\/strong><\/p>\n

Putin, Xi Jinping sign mega gas deal on second gas supply route<\/a><\/p>\n

Defying the dollar Russia & China agree currency swap worth over $20bn<\/a><\/p>\n

Go to Original \u2013 rt.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Sberbank, Russia\u2019s largest lender, will be the first bank in the country to start issuing credit guarantees denominated in Chinese yuan. The new yuan-based letters of credit ensure payments between buyers and sellers, with the bank acting as a router.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[146],"tags":[],"class_list":["post-50352","post","type-post","status-publish","format-standard","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/50352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/comments?post=50352"}],"version-history":[{"count":0,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/50352\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media?parent=50352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/categories?post=50352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/tags?post=50352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}