Deutsche Bank has become the first European bank to be approved for the State Administration of Foreign Exchange (SAFE)’s Pilot Scheme for Facilitation of Foreign Exchange Receipts and Payments for Trade, which aims to simplify and improve foreign currency payments for cross-border trades.
Under the scheme, eligible clients of Deutsche Bank China (Shanghai Branch) will be exempt from providing supporting documents for foreign currency trade payment upfront, allowing a straight-through payment processing upon the client’s e-banking instruction. Compared with the traditional payment procedure, this cuts the foreign currency payment process time from days to just a few minutes.
The bank has completed its first foreign currency payment under the pilot scheme for global automotive technology company Aptiv on September 30.
“Cross-border foreign exchange payments have been a lengthy process for corporates. With Deutsche Bank’s pilot scheme services, we see the direct benefits with faster and easier payments,” said Jerry Chen, Asia Pacific Chief Financial Officer at Aptiv.