RMB opens first exchange door for Chinese Yuan
Rand Merchant Bank (RMB) Namibia paved the way for other dealers earlier this week when they launched the Yuan exchange platform to ensure that trade between Namibia and China is made easier.
RMB Namibia, a leading corporate and investment bank and part of one of the largest financial services groups in Africa, the FirstRand Group, will be the first local bank dealing in the Chinese Yuan, providing comprehensive payment solutions to allow Chinese Yuan remittances of both notes and swift transfers.
At an event held earlier this week Chinese business people from across Namibia converged in Windhoek to witness the launch as well as pose questions on how the transactions will take place.
According to RMB Namibia, they will be able to provide comprehensive currency solutions to ensure that trade with China is more convenient. The bank said customers who need to exchange Namibia Dollar for Yuan and vice versa, will be able to exchange the currencies in cash as well as electronic transfers through the Swift payment system.
Speaking at the event, Chinese ambassador to Namibia, Xin Shunkang said the ties between China and Namibia continue to grow as economic and bi-lateral trade continue to strengthen.
“It is a great step of the Chinese Yuan’s “go international” process and also important to the Chinese companies here. They will benefit from easy exchange of Namibia Dollar to Chinese Yuan, easy transfers of Namibia Dollar back to China without exchanging Namibia Dollar to US Dollar, so as to mitigate exchange rate difference loss. It will encourage more Chinese companies to invest and operate in Namibia,” he said. Namibia has become one of the more promising trade partners and investment destination countries of China among the African countries. Trade volumes between Namibia and China reached US$ 863 million in 2014. China ranked as No.3 exporter and No.10 importer of goods to and from Namibia.
Several other African countries have already dealt with Chinese Yuan notably South Africa, Botswana, Madagascar, Mozambique, the Congo, Angola, and Nigeria. The Chinese ambassador expressed the hope that RMB Namibia can enlarge and deepen cooperation with Chinese banks and financial institutions.
“We can contribute to liberalization of Chinese economy and benefit the oversea investment of Chinese companies by joint efforts,” he said.
Looking ahead, Xin said there are great potentials for further expanding trade and economic cooperation, especially in the finance sector adding that they will seize every opportunity to expand cooperation and build up the relationship through more daring efforts.