Citi has launched a new Renminbi (Rmb) offering to allow its clients in Latin America to issue receive and settle Rmb-denominated letters of credit (LCs) with their Chinese trading partners.

This offering follows on from the bank’s UK Rmb scheme that was rolled out at the end of last week.

Under Citi’s latest Rmb solution, companies in Latin America will settle their trade transactions with their counterparties in China directly in Rmb.

LCs are the most common method of settling transactions in Chinese-Latin American trading activity, Citi says in a statement. The new capability will provide Citi clients with new alternatives for trade financing, trade processing and risk mitigation.

“Through the launch of this Rmb-settlement solution in Latin America, added to our other complementary trade solutions, we are providing our clients in the most active trade corridor in the region with a unique value proposition, which addresses the fast changing demands of international trade with China,” says Othman Gamero, trade services head for Latin America, Citi transaction services.

This solution follows the launch of Citi’s Latin America trade desk in May this year.