(23 September 2016 – Germany) Deutsche Bank this week announced that it has successfully executed its first cross-border Renminbi netting transaction for Bosch under People's Bank of China (PBOC)’s centralised cross-border Renminbi management by multinational companies scheme.
The Bosch Group has a global netting centre in Germany for cross-border settlement transactions among intra-group companies. As part of the solution, Deutsche Bank has implemented a customised process to consolidate the RMB cross-border transactions of Bosch’s China entities and settle with Bosch’s global netting centre on a pre-defined netting schedule.
Mahesh Kini, Managing Director, Head of Trade Finance & Cash Management Corporates – China at Deutsche Bank, said: “Through the first netting transaction executed, Deutsche Bank was able to consolidate approximately 2000 cross-border payments into a single transaction, and save considerable costs and efforts to Bosch entities in China.”
Christian Zeidler, Head of Corporate Finance and Regional Treasury for APAC at Bosch, said: “This Renminbi netting solution will significantly benefit our global treasury operations with improved transaction costs due to the reduced number of payments, better global liquidity management across the group, and minimised onshore FX exposure by centralizing FX management in HQ Germany. Our China subsidiaries are now another step closer to full integration in our global treasury operations.”