Commerzbank introduces renminbi accounts in Hungary

Analysis

As of October, clients of Commerzbank Group in Hungary can keep accounts in Chinese renminbi, according to an announcement issued today by the German-based corporate bank.

Clients of Commerzbank Zrt. may open accounts in RMB, and they can initiate and receive transfers through this account to and from China as well as to and from companies outside of China, the bank said, adding that the account can also be used to conclude FX spot and forward transactions. The product range is to be further expanded in the near future, as the bank also intends to offer loans in RMB to its corporate clients.

“Encouraging settlement of commercial transactions in renminbi is an essential element of liberalization of the foreign trade of China,” said Balázs Kenesei, director of transaction services at Commerzbank Zrt.

Since the central bank of China devalued the Chinese currency in several steps this August, and further downgrades might be expected, the importance of commercial transactions concluded in renminbi has increased, the announcement said. Importers who had concluded contracts with their partners in RMB are now able to purchase at prices some 6% lower in euros compared to the beginning of August, the announcement explained.

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