Reuters reported on November 12 that Citigroup executives expressed the bank’s ambition to expand its foreign exchange and cross-border businesses, leveraging the trend of Chinese enterprises going global and the growing international use of the renminbi. Flávio Figueiredo, global head of foreign exchange at Citigroup, said during the bank’s annual China conference held in Shanghai that their role is to assist Chinese clients in conducting business overseas, including managing currency risk and invoicing international customers in renminbi.
Citigroup recently obtained a wholly foreign-owned securities license in China. Mark Luet, head of Japan, North Asia, and Australia banking operations at the bank, noted that revenue tied to Chinese clients has become one of the key growth drivers for Citigroup, with such business experiencing double-digit growth for multiple consecutive years—among the fastest rates seen by the bank across Asia. He highlighted that Chinese firms are particularly active in globally competitive sectors such as electric vehicles, consumer electronics, digital industries, and supply chains related to energy transition.
Figueiredo maintained a relatively optimistic outlook on the renminbi, forecasting it could strengthen to 6.5 per U.S. dollar by mid-2024, representing nearly a 3% appreciation from Wednesday’s level of 6.67. This remains a projection, not an established outcome. He also acknowledged that broader international adoption of the renminbi is likely to unfold gradually.
Original: toutiao.com/article/1881652626557123/
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