Bank of China to work with Filipino banks for peso-renminbi trading facility
Nov 02, 2018 (China Knowledge) - The Manila branch of the Bank of China <3988:HK> has concluded a partnership with 13 Filipino banks which include Asia United Bank and Bank of Commerce for establishment of the Philippine RMB Trading Community.
This trading community is aimed to simplify currency conversion between the Chinese renminbi and Filipino peso. The peso-yuan trading facility will be introduced later this month. The deal will allow businessmen and investors to do a direct conversion between the two currencies, removing the need to first convert the peso into U.S. dollars and then the renminbi and vice versa.
The bilateral arrangement will help boost trade, investment and tourism between the Philippines and China. Besides that, such arrangement will help companies and individuals reduce transaction costs for payment and remittance.
China has been working on to strengthen its cooperation and trade relations with the countries in Asia. The People’s Bank of China and Bank of Japan also signed a currency swap agreement when Japanese Prime Minister Shinzo Abe visited Beijing earlier this week.
The Philippine RMB Trading Community has also announced plans of establishing a yuan clear bank in the Southeast Asian country as the ASEAN community seeks to strengthen its trade ties with China.
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