Citi today announced that it has successfully implemented a global RMB netting solution for Samsung Electronics, one of the world’s leading electronic companies.

In March 2015, Samsung Electronics started trading the Chinese Renminbi (“RMB”) directly with the South Korean Won, converting its trading flows between China and Korea into RMB and settling transactions between its headquarters and Chinese subsidiaries.

Global netting solution

After this, Samsung Electronics and Citi developed a global RMB netting solution, managed by Samsung Electronics’ global netting center and utilizing Citi’s global platforms and netting services. This solution brings significant opportunities for more effective liquidity management and working capital optimization for Samsung Electronics. 

Citi claim this is a landmark mandate, with Samsung Electronics conducting the world’s first intercompany cross-border netting transaction using RMB, leveraging the most recent nationwide policy reform in China and paving the way for other multinational corporations to follow.

“In-house banks and netting structures are an increasing trend for our clients as they take treasury centralization to the next level. With the rise of RMB as a global currency, and as the leading international bank in China, Citi continues to bring breakthrough RMB cross-border treasury center solutions to market,” said Amol Gupte, Regional Head of Treasury and Trade Solutions, Citi Asia Pacific. “Citi is honoured to be part of this historical transaction, which would not have been possible without the confidence instilled in the market by the Chinese and overseas regulators, especially in Hong Kong and South Korea.”