On October 21 of New York local time, Agricultural Bank of China Limited (ABC) New York Branch had its US dollar clearing business successfully launched. A major "first" for ABC, ABC thus becomes a tier-one global clearing bank for US Dollars
The clearing business is settled through the Clearing House Interbank Payment System (CHIPS). It's learnt that CHIPS is the world's most important clearing institution and accounts for 96% of global US dollar clearing. After New York Branch started business, ABC made active efforts to join CHIPS and eventually became its 53rd participating bank for clearing in the world.
The successful launch of the business is significant for ABC. On the one hand, it reduces ABC path dependence on correspondent banks and improves its ability in business value creation. Previously, ABC US dollar clearing business was handled by correspondent banks in the United States, and major business resources were occupied by international large clearing banks. After the business is launched, ABC realizes tier-one US dollar clearing through New York Clearing House for the first time. It effectively promotes the self-dependent research and development of US dollar clearing products and improves the business benefits. On the other hand, it enhances ABC comprehensive service ability for clients. Many clients of ABC, especially trade financing clients, have considerable demand for US dollar clearing business. Launch of the US dollar clearing business further strengthens ABC ability in cross-border financial services and elevates its comprehensive service level for clients.