Bank’s huge deal reflects potential
Feng Li was in a buoyant mood after a record day of business.
The executive vice-president of Bank of China’s Johannesburg branch had overseen a 2.7 billion yuan ($422 million) transaction on Nov 30 for a Mauritius client — the bank’s biggest single clearing deal in Africa.
It was further evidence that Chinese banks are playing an increasingly bigger role in the African financial sector.
Bank ofChina was authorized in July by People’s Bank of China, China’s central bank, to serve as the clearing bank for renminbi business in South Africa. Even before that, in the first eight months of this year, it was responsible for clearing 60 billion of the 80 billion yuan cleared on the continent.
“This was our biggest single transaction since we began renminbi clearing, and because of the new authorization, we expect to do more,” the BOC executive said.