Standard Chartered Bank China said one of its corporate clients has been approved for a multi-currency cash pooling pilot for multinational companies, making it the first and only foreign bank to cooperate in the pilot.
The bank will provide the client with cross-border fund transfer as well as settlement and liquidity management services, delivering innovative financial services to promote trade and facilitate investment.
Last Friday, the People's Bank of China and the State Administration of Foreign Exchange announced that a pilot cash-pooling service for multinational companies will be launched in Beijing and Shenzhen.
Aiming to advance the construction of the Guangdong-Hong Kong-Macao Greater Bay Area and the Beijing pilot free trade zone, the scheme will integrate domestic and foreign currency management to facilitate the use of cross-border capital and support the building of a higher-level open economy, the authorities said.
For corporates, the pilot will reduce manual processes and greatly improve the flow of cross-border funds by integrating the process of yuan and foreign currency cash pooling.
In addition to adjusting the foreign debt and overseas lending quota, the pilot scheme also makes it possible for corporates to purchase foreign exchange in advance within a certain quota, providing convenience for multinational groups in managing the cross-border fund of their member companies, significantly reducing exchange costs and effectively managing exchange risks.
At a bank level, the pilot optimizes the service delivery through improving work efficiency and reducing operating costs, Standard Chartered China said.