China supports more cross-border RMB settlement to facilitate trade

Date: 08 Jan 2018

China unveiled more supportive measures to encourage cross-border renminbi settlement to facilitate international trade and investment, according to a central bank notice.

Enterprises may use renminbi for cross-border settlement in whatever foreign currency-based trade, the People's Bank of China said in the notice sent to its local branches, policy banks, State-owned and joint stock commercial banks.

The notice said it would allow banks to provide cross-border renminbi settlement services for individuals and carbon trading.

Foreign-funded companies could open multiple renminbi deposit accounts in different places in the country and transfer money within these accounts.

Income from investment, including profits and dividends, of foreign-funded companies could be transferred abroad freely via the cross-border renminbi settlement scheme.

The capital raised overseas by Chinese companies through bond and stock issuance would be allowed to be transferred into domestic accounts according to actual need.

The notice came into effect 5 Jan.

The move came on the heels of a central government arrangement to optimize the business environment 3 Jan.

"Greater efforts should be made in streamlining administration, compliance oversight and offering better services. An internationally competitive business environment would have equal treatment for domestic and foreign enterprises and stimulate market entities and social creativity," according to the State Council.

Source: China Daily

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