China Expands Pilot Areas for RMB Settlement of Cross-Border Trade Transactions
Jun. 29 – China has expanded the pilot areas of RMB settlements for cross-border trade transactions to 21 cities and provinces, and will also expand the pilot business scope.
A circular jointly issued by the People’s Bank of China, the Ministries of Finance and Commerce, the General Administration of Customs, the State Administration of Taxation and the China Banking Regulatory Commission expands the pilot implementation of cross-border trade RMB settlements to 21 provinces, autonomous regions and municipalities.
The pilot area now includes Beijing, Tianjin, Inner Mongolia, Liaoning, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Hubei, Guangdong, Guangxi, Hainan, Chongqing, Sichuan, Yunnan, Dalian, Ningbo, Qingdao, Xiamen and Shenzhen.
Furthermore, the pilot business scope includes goods traded services and RMB settlement of other current accounts. The new rules remove restrictions on where RMB settlement can be used for cross-border trade transactions. Previously this was limited to Hong Kong, Macau and the ASEAN member states.
The pilot RMB settlement of cross-border trade transactions is expected to further boost the trade and investment facilitation, according to the central bank.