First Cross-Border Yuan Trade Settlement Deal Made

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Jul. 6 – The first cross-border yuan trade settlement deal came through today from the Bank of China (BOC), Hong Kong to Bank of China, Shanghai reports Xinhua.

The deal is part of a pilot program announced by Beijing last April to ease  cross-border trade deals for Chinese importers and exporters in southern Guangzhou, Shenzhen, Shanghai, Zhuhai and Dongguan wanting to transact in renminbi with businesses in Macau, Hong Kong and other regional trade partners.

“Cross-border yuan trade settlement could help firms simplify trading procedures and reduce operation costs. It could also help banks to expand business scope, improve service, and forge stronger ties with enterprises,”  Li Lihui, president of the BOC said in a statement.

The BOC, Shanghai branch told Xinhua that 11 overseas agent banks have already expressed interest on yuan trade settlement deals these include Standard Chartered (Hong Kong), Bank of East Aisa (BEA), Hong Kong-based Wing Hang Bank to name a few.