Deutsche Bank Sri Lanka clients to get facility to pay in Asian currencies
ECONOMYNEXT – Germany based Deutsche Bank said it will offer a foreign exchange trading system that will allow companies in Sri Lanka to settle international trade contracts in Asian currencies, cutting costs and forex risks.
“We are investing in our Corporate Bank business in Sri Lanka,” Deutsche Bank Sri Lanka Chief Country Officer Vikas Arora said in a statement.
“As international supply chains gravitate toward settlements in local currency, we are pleased to cater to our clients’ requirements.”
The ‘Autobahn’ branded system will benefit firms which have supply chains across Asia.
By mid 2020, clients in Sri Lanka would be able pay in local currency between two Asia markets, reducing the FX execution costs to a single conversion along with a faster delivery between the branch network, the bank said.
E-commerce is also driving the demand for payment in local currencies, Deutsche Bank said, for which the bank is offering an interface.
“Clients are challenging the historical trend of settling payments in USD between two Asian markets, as they become more aware of the layers and costs in their payment chain,” Arora said.
“As a result, clients are demanding cheaper and faster ways of delivery, which our digital FX platform Autobahn is enabling.”
“In addition to introducing the enhanced FX platform, we are also extending FX API technology to local clients.
“This means they can connect our platform into their own direct sales eCommerce infrastructure, while we support them in pre and post trade activities.”
Deutsche Bank is also planning to offer both inbound and outbound payments in rupees, later in the year.
Deutsche Bank has operated in Sri Lanka from 1980, serving multinationals, and corporate customers. (Colombo/Feb20/2020)