MANILA, Philippines - The Rizal Commercial Banking Corp. (RCBC) is looking at expanding the number of its sites that offer the RCBC yuan savings account as it capitalizes on the growing economic relationship between mainland China and the Philippines.
In addition to the traditional Chinese-dominated areas of Binondo, Cebu and Davao, RCBC eyes Baguio and other areas around the country where Chinese nationals and other interested clients may need a safe haven to park their yuan denominations.
“The Chinese yuan is definitely strengthening and we are seeing a lot of opportunities as the domestic market of Chinese traders, entrepreneurs and other migrants continue to grow,” Ismael R. Sandig, RCBC executive vice president and Retail Banking Group head, said.
“The demand is still conservative, but it is prudent to be in this position where we can already offer it to this growing client base,” Sandig added.
Both individuals and corporate clients can take advantage of this latest RCBC foreign currency deposit instrument as a secure means to grow their reserves of Chinese yuan. Customers will also be able to convert this currency to either dollar or peso subject to the guidelines of the Bangko Sentral ng Pilipinas (BSP) on foreign exchange.
This account comes with a specially designed passbook that offers detailed transaction history to help clients track their cash flow. They can also access their accounts over the counter.
The market for the Chinese yuan to expand further as the investment opportunities recently brought home by President Benigno Aquino III from China bear fruit in the coming years.
“Funds will be coming in from China as business relations improve,” Sandig said. “And where there’s investment, there’s also the need for a Yuan savings account. As the demand increases, we will open up more branches that will accept this product.”
The yuan is one of the most stable currencies worldwide, having fared much better through the economic crisis of 2008 than other higher-risk currencies. Its increasing role as a global economic leader and its attempts to boost the international usage of its currency are some of the factors that will cause the yuan to further appreciate in value in the coming years.