OREANDA-NEWS. January 08, 2016. ICBC has delivered a strong result on the first anniversary of the launch of direct RMB-KRW trading in South Korea. By the end of November 2015, the amount of direct RMB-KRW transactions processed by Seoul Branch of ICBC exceeded RMB 940 billion, ranking among the best of local banks and the first among foreign banks in the country.

South Korea officially launched the direct RMB-KRW trading market on December 1, 2014. Leveraging the leadership in RMB business, ICBC was authorized by the South Korean government and central bank to act as one of the first RMB-KRW market makers in the local market. On the day of opening of direct trading, Seoul Branch soon closed a direct RMB-KRW transaction after the market opened, being one of the first to do so, and continuously quoted direct two-way prices in Seoul's foreign exchange market. In the ensuing year, the branch, by bringing into full play its advantage in RMB business and rich experience in forex trading, actively performed its duty of two-way quotations, injected liquidity of the yuan into the South Korean market, and facilitated the development of the offshore RMB market in the country.

With increasingly deeper trade and economic ties, personnel and cultural exchanges between China and South Korea in recent years, local financial institutions, enterprises and individuals in South Korea have been using and accepting the Chinese currency more often in a range of financial activities from trading, investment, to settlement and wealth management. Developing direct RMB-KRW trading helps lower exchange costs, promote bilateral trade and investment, and further facilitate the internationalization of RMB.

China Foreign Exchange Trade System (CFETS) is close to launching direct RMB-KRW trading, which signals further progress in RMB cooperation between the two countries. For the next step, by virtue of its status as a market maker for RMB-KRW trading, the Bank will continue to market and process direct RMB-KRW transactions to more Chinese and Korean enterprises, and promote the cross-border use of RMB.