MANILA - The growing demand for the Chinese yuan (CNY) in the domestic market has led Metropolitan Bank and Trust Co. (Metrobank) to offer CNY-denominated products and services in the Philippines.

In a statement released Friday, the George Ty-led bank said it will offer a CNY interest-bearing passbook savings account and a CNY time deposit for clients in the Philippines.

Customers will also be able to buy or sell CNY against the US dollar or the Philippine peso, subject to the central bank's circular on foreign exchange, the bank added.

Metrobank said it would be the first local bank to offer a line of CNY-denominated products and services, which would be piloted in 9 branches in Metro Manila on Monday, September 28.

Commonly known as renminbi, CNY is the currency used by the People's Republic of China.

"The launch is in response to the growing demand for CNY in the domestic market, driven by the Philippines' strengthening partnership with China. To date, the Philippines remains one of China's major exporters of food products such as fruits and seafood, as well as other products including IT merchandises and electronic devices," Metrobank said.

On the other hand, Metrobank said China is the biggest exporter to the country, supplying up to 21% of various goods.

Aside from trade, the bank said China continues to support the Philippines' development agenda on agri-business, tourism, infrastructure, mining, telecommunications, education, and other sectors.

"CNY denominated products and services in the Philippines will provide greater ease to exporters and help facilitate more fluid business transactions with China. In addition, the CNY functions as a strong reserve, anchored on the Chinese government's efforts to strengthen the currency, in pursuit of global economic recovery," Metrobank said.

Metrobank, the country's second-largest lender, reported an 11% growth in profits for the first 6 months of the year to P3.1 billion on the back of strong interest income and trading gains.

At present, the Ty-led bank has a network of 725 domestic branches, 35 foreign branches, subsidiaries, and representative offices.