25.07.2012Municipal Bank Opens Account in Chinese Currency

• CNY account is for commercial payments
• Purpose – to facilitate companies in their trade relations with China – one of Bulgaria’s biggest economic partners

Municipal Bank is among the first Bulgarian banks, to have an account in CNY. The account in Chinese renminbi yuan (CNY) was opened in Hong Kong, China with our correspondent bank UniCredit Bank AG Hong Kong Branch.

"We made this decision because we want to develop Municipal Bank AD as a modern and market-oriented bank. China is now a world economic power. Leading international banks generate a huge part of their revenues and profits from the Chinese market. According to the European Parliament, China is ranks as EU’s second largest trade partner, and the exports of Chinese goods into the European market has increased by 39.5% in 2009-2010. This is why Europe's leading financial institutions have for years had accounts in yuan, and last year many banks in Eastern Europe also opened accounts in the Chinese currency. Municipal Bank is among the first Bulgarian banks to open an account in CNY. We already have customers using the service, "Sasho Chakalski, Executive Director and Chairman of the Management Board of Municipal Bank AD said.

Municipal Bank’s account in CNY will serve for settlement and trade related transactions. Its advantages are the secure, fast and convenient operation in CNY. It is a good opportunity for Asian investors with interests in Bulgaria and for Bulgarian companies trading with China. In Bulgaria, payments of local investors or Chinese citizens are carried out through foreign correspondent banks mostly in dollars. This procedure makes transaction very expensive by various fees and commissions being accrued.