The five cities of Shanghai and Guangzhou RMB clearing pilot cross-border trade

Published: 16 May 2009 03:01:15

State Council executive meeting held recently, decided in Shanghai and four cities in Guangdong RMB clearing pilot cross-border trade. Experts believe that this will widen the yuan in the international trading system and status of the use of.

State Council executive meeting said that in the current international financial crisis to deal with the situation, the RMB settlement to carry out cross-border trade, for the promotion of our country and neighboring countries and regions to develop economic and trade relations, to avoid exchange rate risk, improve terms of trade, to maintain the steady growth of foreign trade, with very importance. The meeting decided that in Shanghai and Guangdong Province, Guangzhou, Shenzhen, Zhuhai, Dongguan, 4 cities RMB clearing pilot cross-border trade.

In response, the NPC Financial and, deputy director of the Institute of Finance said that the RMB settlement of cross-border trade, after the pilot means that enterprises can trade directly with the RMB settlement of trade transaction costs greatly reduced. At the same time, in response to the current financial crisis in the United States issued a large number of U.S. dollars, increasing pressure on the depreciation of the dollar, and to pay the RMB as the trade can save the exchange rate with U.S. dollar-denominated costs, enterprises can flexibly respond to changes in foreign exchange rates.

Since December last year, China's central bank has six signed by countries and regions amounted to 650 billion yuan of currency swap agreements, the total amount of China's foreign exchange reserves of about 5%, of which five countries and regions are adjacent regional trading partners. Agreement in an exchange of the yuan to increase capital is to serve as the main supply, or commercial trade settlement, such as the role of reserve currency.

Shanghai and Guangdong has been at the forefront of opening to the outside world, in these two provinces and municipalities to carry out cross-border trade for the RMB clearing pilot the development of Shanghai and Guangdong to create a better financial conditions, as well as help to promote the construction of Shanghai international financial center. It is understood that the State Council, relevant departments will be released as soon as possible on the management approach, the yuan trade settlement standardized operational activities, and steadily push forward the pilot work.