Citi's Regional Markets Business Sees FX Flows Rise Over 20% in Q1

Institutional foreign exchange (FX) flows for Citi's markets business in the region have risen more than 20 percent amid market volatility, with Singapore recording the highest volumes.

- Sheila Chiang

Gyrations from US tariffs and global slowdown fears fueled the year-on-year increase in the first quarter, the bank's head of markets in Asia South, Ms Sue Lee, told The Straits Times in an interview.

"In this whole market volatility, we have seen a lot of institutional client activity. Singapore, being the top FX hub in Asia, saw a lot more flow and activity," she said.

"There's just a lot more client activity on various fronts — hedging, two-way flow, liquidity provision, et cetera."

Citi's Singapore hub, which offers a full suite of financial products and services, saw these increased trading flows as clients prefer a one-stop shop for their needs, she said.

"There is a whole ecosystem around India equities and fixed income as foreign investors need market access for offshore derivatives. So global clients prefer banks that have the full product suite offering in onshore and offshore FX, equities, bonds and futures. For example, our futures, derivatives and clearing business is based in our Singapore hub."

Asia South — comprising Asean's Indonesia, Malaysia, Vietnam, Singapore, Thailand and the Philippines, as well as India, Sri Lanka and Bangladesh — accounted for about 8 percent of Citi's global revenues in the first quarter, up from some 7 percent a year earlier. It is also one of the fastest-growing regions for the banking group.