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

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.