China Extends Cross-Border Trade In RMB
Friday, August 26, 2011
The People’s Bank of China, the Ministry of Finance, the Ministry of
Commerce and the State Administration of Taxation have jointly announced that
businesses throughout China will now be able to carry out cross-border trade
in RMB.
Before the announcement, and since June last year, the pilot scheme to allow
foreign trade transactions in RMB had only applied to businesses and banks
in Beijing and twenty autonomous regions.
However, there has been a growing demand for cross-border RMB settlement to
be extended, and the People’s Bank announcement had been presaged recently
by a promise by Vice Premier Li Keqiang.
The People’s Bank, in its statement, pointed out that the expansion of
RMB cross-border settlement to the whole country is included in the country’s
12th Five Year Plan. It is expected that it will further encourage the overall
internationalization of the currency. |
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