Possibilities for closer ties between New Zealand and Chinese business took a step closer with Westpac receiving approval from the People’s Bank of China to act as a market maker for direct trading of NZD/CNY on the China Foreign Exchange Trading System.
The ‘market maker’ licence allows direct interbank trading of NZD/CNY meaning reduced transactional costs and over time increased liquidity to currency deals between New Zealand and Chinese trading partners. NZD is only the 4th currency to be granted ‘market maker’ status.
Westpac NZ Chief Executive Peter Clare says today’s announcement helps make trade with China more efficient and will open future opportunities to strengthen the ties between the two countries.
“China/New Zealand trade is a long term growth story. As one of the first banks to offer direct convertibility for mainland China transactions, Westpac plays an important role in this connection, making it easier for our customers to do business in China,” Mr Clare said.
Westpac NZ General Manager Corporate and Institutional Bank Karen Silk says being one of only two Australian/New Zealand banks to offer direct convertibility for mainland China transactions builds on Westpac Group’s Asia strategy and helps seamlessly connect our customers to China.
“Westpac is building opportunities for New Zealand businesses by supporting customers to take part in the growing trade and investment flows in the region.
“This is another example of deepening our capability in strategic regions where we have existing leadership positions and expanding our product and service offering.”
Westpac has been present in China for more than 40 years and has extensive renminbi capability in China and has foreign exchange dealers located in Shanghai.
Westpac’s Asian branch network includes branches in Beijing, Shanghai, Hong Kong, Singapore and Mumbai and a representative office in Jakarta.
- The NZD is the 4th currency to be granted ‘market maker’ status
- The CNY is now ranked by SWIFT as the 2nd most used currency in trade finance
- NZD is 10th most traded currency in global FX markets
Benefits for Kiwi businesses
- Direct convertibility between the NZD/CNY cutting out the need to cross through the USD
- Reduced costs of trading
- Increased visibility of New Zealand business in China