The internationalization of the renminbi has taken another big step forward with the issue of Latin America's first-ever letter of credit denominated in the Chinese currency, Citi said on Monday.
In a statement, the US bank said it had issued the renminbi letter of credit for a Peruvian client in the retail sector, enabling it to “significantly improve conditions for its imports.”
Although banks in Latin America have long paid for goods and services using renminbi on behalf of their clients, including Citi since 2011, this latest move should provide companies in the region with greater flexibility in their dealings with Chinese counterparts.
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