Home >

Quanzhou Shoe Enterprises Will Enjoy The Benefits Of RMB Settlement In Cross-Border Trade.

2010/5/20 10:37:00 38

Quanzhou Shoe Enterprises Cross Border Trade RMB Settlement

 


Recently, the expectation of RMB appreciation is increasing, and the import and export enterprises that often use the US dollar for trade settlement will face more serious exchange rate risk.

If we can bypass the US dollar and settle accounts with overseas buyers directly through the renminbi, this will not only lock in the cost and revenue in advance, but also avoid the risk of exchange rate.

In fact, this is the cross border trade RMB settlement currently under way in China.

In July last year, cross-border trade RMB settlement business took the lead in Shanghai, Guangzhou, Shenzhen, Zhuhai and Dongguan.

Reporters recently learned from relevant channels that the pilot is expected to expand to Fujian province in the near future. Enterprises in Quanzhou are also expected to enjoy the benefits of RMB settlement in cross-border trade soon.


Yesterday, reporters learned that the Bank of China, the industrial and Commercial Bank of China and the branch of the Agricultural Bank in Quanzhou have already made preparations for the cross-border RMB settlement ahead of schedule.


According to Li Liyang, director of the International Settlement Department of Quanzhou branch of Bank of China, cross border trade RMB settlement refers to the settlement of import and export trade, non trade and service items in Renminbi denominated, declared and settled in RMB.

At the initial stage of the trial, other countries and regions outside China include the ten ASEAN countries (Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Vietnam, Burma, Laos, Kampuchea) and Hongkong and Macao.

But after this pilot expansion, it is expected to cover all countries and regions outside China, that is, overseas areas are no longer restricted.


"For many importing and exporting enterprises, it is necessary to convert Renminbi into foreign exchange when importing, and to exchange foreign exchange received into Renminbi at the time of export. With the fluctuation of exchange rate, the cost of foreign exchange swap has increased a lot.

With RMB as the currency of international settlement, the most direct advantage of enterprises is to avoid exchange rate risk and prevent the risk of foreign exchange depreciation. At the same time, enterprises can also lock in financial cost beforehand, and estimate the expected return of enterprises.

Li Liyang analysis, "in addition, the use of RMB settlement by the import and export enterprises has simplified the currency exchange links between the two sides of the paction. It only needs to go through the declaration of the balance of payments, do not need to go through the formalities of foreign exchange cancellation, reduce paction costs and improve the efficiency of settlement."


Li Liyang said that because the renminbi is relatively strong, many countries, especially Southeast Asian countries, are willing to accept RMB as currency of settlement, and directly use Renminbi to trade, which is conducive to enhancing the confidence of export enterprises and expanding export volume.


As a city and trade port city, Quanzhou has a large proportion of import and export trade in the city of GDP. In 2009, the total value of foreign trade import and export was 8 billion 180 million US dollars. At present, the export and import business of the whole city has nearly 5000 foreign trade enterprises.

According to the insiders, developing cross-border trade RMB settlement is of great significance for promoting the development of Quanzhou's foreign trade economy.


 


 

  • Related reading

Ms Amy Driving In High Heels

Footwear industry dynamics
|
2010/5/20 10:34:00
34

商务部望WTO机制下解决中欧皮鞋贸易争端

Footwear industry dynamics
|
2010/5/20 10:28:00
37

Guangdong: Fight Hard And Fight Hard Battle

Footwear industry dynamics
|
2010/5/20 10:16:00
36

Milk Tea, Take Off High Heels And Sing.

Footwear industry dynamics
|
2010/5/20 10:13:00
37

鞋企奥康成立高科技数字化研发基地

Footwear industry dynamics
|
2010/5/20 9:46:00
24
Read the next article

丁永勋:拆迁成富翁“大望京模式”能否推广

相对于那些野蛮拆迁和强制强拆,大望京的拆迁简直可以奉为楷模。虽然拆迁造富的神话不容易复制,但是大望京模式所代表的向村民让利的鲜明方向,却可以复制,值得推广。要创造条件,让农民持久分享城市化中土地增值的收益,这才是和谐拆迁的秘诀所在 在新旧拆迁条例的空档期,各地由拆迁引发的冲突、上访甚至极端事..