UOB Appointed Cross-Currency Dealer for Yuan and Rupiah

The bank's wholly owned subsidiaries in China and Indonesia have received Appointed Cross-Currency Dealers (ACCD) status for the Chinese Yuan and Indonesia Rupiah (CNY/IDR), the bank said on Monday

The ACCD licenses allow UOB China and UOB Indonesia to open onshore IDR and CNY accounts respectively and offer cross-currency exchange, financing, swaps and forwards in this currency pair, according to an announcement.

In addition, UOB China as a CNY/IDR direct market maker can offer two-way quotes on CNY against IDR in the interbank FX markets and its clients can access more competitive FX rates for greater cost-efficiency, UOB said.

ACCDs aim to promote the settlement of international good and services trade and direct investments in the local currencies of China and Indonesia. They form part of the local currency settlement framework between the central banks of China and Indonesia, to facilitate greater bilateral trade and investment flows between the two countries.

Cross-Border Solutions

According to the bank, it applied for the ACCD licences as it observed growing demand for efficient cross-border cross-currency solutions from companies in the region.

In 2020, bilateral trade between China and Indonesia reached $78.4 billion, with China’s imports from Indonesia growing by 9.5 percent. In the same year, China’s foreign direct investment to Indonesia grew 86.5 percent to almost $2 billion.

«We see their increasing need for effective cross-border solutions, from financing and cash management to FX. By facilitating our clients’ use of local currencies for their regional operations, we will also help to drive greater trade and investment flows along the China-ASEAN corridors while contributing to intra-regional financial integration and cooperation,» Wee Ee Cheong, UOB deputy chief executive, said.