On January 17, local time, the Bank of China Manila Branch announced that the Bank of China Manila Branch was officially authorized by the People’s Bank of China to act as the clearing bank for the Philippine RMB business, and it officially opened on January 16.
An overseas RMB business clearing bank is an institution authorized by the People's Bank of China to provide clearing and settlement services for participating banks in handling RMB business in overseas countries or regions wher RMB clearing arrangements have been established. Currently, RMB clearing arrangements have covered 25 countries and regions, and the Philippines is one of the four ASEAN countries that have obtained clearing arrangements.
According to reports, the Philippine renminbi clearing bank can directly access the important financial infrastructure under the supervision, management and guidance of the People’s Bank of China-the renminbi cross-border payment system (CIPS system). There are few cross-border accounts to process remittances, and the intermediate The low cost makes it convenient for enterprises and individuals in the Philippines to use RMB more efficiently and preferentially, which is conducive to promoting more use of RMB for settlement in China-Philippines trade and investment, and promotes the facilitation of bilateral trade and investment. In addition, by deepening cooperation with local financial institutions, the Philippine RMB clearing bank will play a good demonstration effect, driving more local banks in the Philippines to carry out RMB remittance, exchange, and settlement services, and play an active role in the joint construction of the Philippine RMB market.
According to reports, the renminbi has a long history in the Philippines. In 2002, Bank of China Manila branch officially opened. On December 1, 2006, the Central Bank of the Philippines officially announced that the RMB is freely convertible in the Philippines. In April 2009, with the approval of the central banks of the two countries, Bank of China Manila Branch became the designated bank for RMB exchange and cash business in the Philippines. In August 2014, China and the Philippines jointly put into production the Philippine renminbi clearing system, making Philippine inter-bank renminbi transfers convenient and quick.
In 2018, in order to reduce corporate transaction costs and hedge exchange rate risks, with the support of the Central Bank of the Philippines, Bank of China Manila Branch initiated preparations for the "Philippine Renminbi Dealers Association", with 14 initial members. It is the first self-discipline of RMB-to-local currency transactions outside China Financial organization. On November 20, 2018, witnessed by President Xi Jinping and President Duterte, the direct trading market of RMB to Peso was officially launched. The Chairman of the Association, Bank of China Manila Branch completed the first transaction in the market on the same day. In the same year, the Manila branch of Industrial and Commercial Bank of China officially opened. The team of Chinese-funded financial institutions in the Philippines continued to grow, and the RMB business was accelerated.
On September 17, 2019, the People's Bank of China authorized Bank of China Manila Branch to act as the clearing bank for the Philippine RMB business. Participating banks can use this to obtain RMB liquidity, enter China's domestic foreign exchange market and inter-bank bond market, and speed up RMB settlement.
According to SWIFT data, in 2020, the Philippines' renminbi clearing volume will rise to 4th in the ASEAN region and 24th in the world.
As China and the Philippines continue to deepen economic and trade exchanges, RMB business in the Philippines will continue to expand. Chinese-funded financial institutions in the Philippines will continue to improve their service capabilities, perform their responsibilities as a RMB clearing bank, and work with local partners to promote the use of RMB in the Philippines and cross-border transactions. Serve the local economic and social development, unblock the economic and trade exchanges between the two countries, and bring tangible benefits to the enterprises and people of the two countries.
(Original title: Bank of China Philippines RMB Business Clearing Bank Opens)
