Citi turns to China Inc.'s global expansion, yuan to grow cross-border business
C•Citi aims to expand currency trading and cross-border business by serving Chinese companies growing overseas and supporting broader yuan use. The bank says China-related business has recorded double-digit growth for several years, while its foreign-exchange head expects the yuan could reach 6.5 per dollar by mid-next year.
1. Targeting overseas growth
Citi is seeking to grow its currency trading and cross-border businesses by helping Chinese companies expand abroad, including managing currency risk and invoicing overseas customers in yuan. Executives said Chinese clients have become one of the bank's most important growth engines, with China-related business recording double-digit growth for several years.
2. Sectors and markets
Citi said Chinese companies are active in electric vehicles, consumer electronics, digital industries and the energy-transition supply chain, and that it sees interest in Central Asia. The bank is pitching hedging and derivatives products to companies expanding into Africa, eastern Europe, the Middle East and Latin America.
3. Yuan outlook
Citi's global head of foreign exchange said the yuan could reach 6.5 per dollar by mid-next year, up nearly 3% from Wednesday's level of 6.67. He described the currency as a more stable, less volatile asset, while saying wider yuan adoption is likely to be gradual.
