China Liberalises RMB Trade Settlement
June 28, 2010 by admin · Leave a Comment
Geographic restrictions on China’s year-old renminbi cross-border trade settlement pilot scheme have been lifted, a move that is in line with the country’s push to slowly internationalise its currency.
Trade transactions from anywhere in the world can now be settled in renminbi under new rules announced by the People’s Bank of China, the country’s central bank, and other regulatory agencies last week. Previously only deals between companies in Hong Kong, Macau and select Asean (Association of Southeast Asian Nations) were allowed with mainland designated enterprises (MDEs) in five cities. The new rules also allow export transactions to be conducted from 20 provinces and municipalities.
