Cross-border trade renminbi settlement business starts Bank of China

6th, Cross-border trade renminbi settlement business officially launched. On the same day, the Bank of Communications accepted Shanghai HuanYu Import and Export Co., Ltd. Informer pen to RMB cross-border pricing and settlement of the remittance business, the use of agency liquidation model for liquidation, import behavior Hongkong and Shanghai Banking Corporation.　　On the same day, Bank of China Shanghai Branch received the first Cross-border trade renminbi settlement pilot business in Hong Kong, the beneficiary of the Shanghai Electric Group under the Shanghai Electric International Economic and Trade Co., Ltd. Bank of Communications International Business director, with the introduction of cross-border trade in renminbi settlement, the relevant policies to achieve three major breakthroughs: first, foreign enterprises can entrust foreign banks as agent or clearing bank. These offshore banks can open renminbi accounts to pilot banks in China, and second, the pilot banks can provide renminbi financing for overseas participation, and third, the pilot banks can directly provide foreign enterprises with renminbi financing under trade. "As a result, regulatory oversight has to be adjusted more significantly." For example, the issue of customs clearance, tax rebates and, in particular, the regulatory coverage of cross-border renminbi flows by monetary authorities vary widely.　　The Director pointed out. Lianping, chief economist at the bank, said foreign companies would hold renminbi after Cross-border trade was settled. They are bound to require the renminbi to be easily convertible into other foreign currencies, and to avoid currency risks, as well as hedging and arbitrage. However, the construction of RMB hedging instruments and arbitrage tools has not yet reached the level of mature market.　　This is the direction we need to work on in the future. In order to ensure the smooth development of the first batch of cross-border trade renminbi settlement business, the supervision department has taken three major measures. The first is the establishment of pilot enterprises to enter the standard: Provincial government recommended Enterprises list, the central six ministerial committee after the joint review, enterprises can carry out the settlement pilot. Second, the current liberalization of the settlement is limited to the trade of goods, and the authenticity of cross-border settlement of goods trade is the easiest to review. Third, the central bank specially developed the information system for the settlement pilot. At present, the system of bank exchange and BOC has been docked with the central banking system. The system can track the whole process of each cross-border transaction.