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As the first day of Sibos kicks off in Toronto, Deutsche Bank announces a range of new software partnerships.

Under a memorandum of understanding (MOU) China’s CITIC Bank will promote Deutsche Bank’s FX4Cash – a global cross-currency payments solution.

The solution will be used as part of CITIC Bank’s extended range of wholesale payment services to its corporate clients.

CITIC clients will obtain access via Swift’s internet and host-to-host channels to make cross-currency payments from one of 20 funding currencies to up to 125 local currencies via wire, check and ACH across more than 160 countries.

In addition, Turkey’s Garanti Bank has also signed an agreement with Deutsche to use its FX4Cash system.

Benefits for Garanti Bank’s corporate clients include paying beneficiaries in over 175 countries in their domestic currencies, from a single domestic bank account in the buyer’s home currency.

Batuhan Tufan, Garanti Bank’s head of financial institutions, says: “FX4Cash, links our market-leading payment and foreign exchange capabilities, allowing Garanti Bank to bring cross-currency products to their sophisticated client base.”

Further to these announcements, Deutsche notes a rapid and sustained increase in clients making payments in emerging currencies, (such as Chinese yuan, Indian rupee and Russianr Roubles) since launching its FX4Cash solution.

Timothy Merrell, Deutsche’s co-head of FX4Cash, global transaction banking comments: “The growing volume of trade between regions such as Bric and the rest of the world is key in fuelling this demand for payments in emerging currencies. Historically, many of these trade flows would have been settled in US dollar or perhaps another major currency, because the importer was able to dictate the currency for payment to the vendor.

“This is changing now as vendors are often increasing invoices by 10% or more to protect them from FX exposure, essentially offering discounts of that level to those that settle in the vendor’s home currency.”

Joseph Randazzo, Deutsche’s head of North America for foreign exchange and global finance markets adds: “As clients realise that it is no longer as challenging as it once used to be to pay suppliers in emerging or heavily-regulated currencies, it further accelerates the demand for such exchange. At this rate, it will be interesting to see if some of these currencies will soon no longer be referred to as ‘exotic’.”

Meanwhile, under another MOU signed with China Merchants Bank (CMB), Deutsche will provide an operational and service support team with Asia Accelerator − its newly launched solution to expedite intra-Asia payment flows.

Asia Accelerator was developed to address inefficiencies in the settlement of Asia’s high volume of USD payments as a result of different clearing time-zones.

Auto-repair capabilities facilitate straight-through processing to ensure that financial institution clients can have their intra-Asia USD payments processed within the same working day in Asia.

As a result, liquidity is automatically directed to active market participants and effectively recycled within Asian participants.

Through this, Deutsche’s clients in the region can reduce the liquidity required to affect their payment book or grow their business without attracting incremental liquidity costs, the bank says.

Xia Jinqing, CMB head of financial institutions says: “By leveraging our extensive network we are able to further enhance cash management services to our clients and meet their trade and business needs across Asia.”

John Ball, Deutsche’s Asia Pacific regional head of cash management for financial institutions, global transaction banking adds: “Asia Accelerator raises the bar for USD payment processing for Asian banks, thereby enhancing their liquidity management and enabling them to be competitive in the markets where they are present.”