Zuercher Kantonalbank is the first Swiss financial company to sign a deal with China Construction Bank for the clearing of renminbi.
China Construction Bank (CCB) has taken up its operations in Zurich at the beginning of this year after receiving the license from Swiss banking regulator Finma in October 2015.
The bank has now signed an agreement with Zuercher Kantonalbank (ZKB) over the clearing of renminbi, the Chinese currency, the two banks said in a joint statement today.
Lowering Transaction Costs
The direct exchange rate between renminbi and Swiss franc reduces the transaction costs for corporate customers banking with ZKB. Hitherto they were forced to buy dollar before acquiring renminbi.
CCB is the only institute in Switzerland licensed by the People's Bank of China, the country's central bank, to undertake cross-border trade with China.
Extension of Services Envisaged
With the agreement, the banks have laid the foundations for an extension of the range of services denominated in renminbi. This will enhance the competitiveness of Switzerland's financial market, the banks said.
