Ministry Of Commerce And Other Six Departments To Optimize Cross-Border RMB Policy

Recently, the people's Bank of China, together with the development and Reform Commission and the Ministry of Commerce, jointly issued the notice on further optimizing the cross-border RMB policy to support the stabilization of foreign trade and foreign investment, It will be implemented from February 4, 2021.

The circular includes five parts and 15 articles in total, covering five aspects, including promoting higher-level trade and investment RMB settlement facilitation, further simplifying cross-border RMB settlement process, optimizing cross-border RMB investment and financing management, facilitating cross-border RMB collection and payment under individual current account, and facilitating the use of RMB bank settlement accounts of overseas institutions.

According to the circular, we should closely focus on the needs of the real economy to promote a higher level of trade and investment RMB settlement facilitation, including carrying out higher level trade and investment facilitation pilot projects nationwide, and supporting cross-border RMB settlement of new trade formats. At the same time, according to the reform of the commercial system, the requirements for business handling and auditing will be adjusted in a timely manner.

In terms of further simplifying the cross-border RMB settlement process, the circular proposes to optimize the formation mechanism of key supervision list of cross-border RMB business, support the electronic examination of documents, optimize the cross-border centralized collection and payment arrangement of cross-border RMB under the current account of transnational enterprise groups, and carry out cross-border RMB settlement business facilitation pilot projects for high-quality enterprises in foreign contracted projects nationwide.

In terms of further optimizing the management of cross-border RMB investment and financing, the circular proposes to relax the restrictions on the use of RMB income from some capital projects, facilitate the domestic reinvestment of foreign-invested enterprises, cancel the management requirements for special accounts related to foreign direct investment business, optimize the management of overseas RMB borrowing business of domestic enterprises, and simplify the overseas lending business of RMB for domestic enterprises Administration.

In terms of facilitating cross-border RMB Receipt and payment under individual current account, the circular proposes to support the development of cross-border RMB settlement business under individual current account, and facilitate individual RMB bank settlement accounts to receive remittance with the same name from Hong Kong and Macao.

In addition, the circular also proposes measures to facilitate the use of RMB bank settlement accounts of overseas institutions, requiring domestic banks to continuously enrich RMB financial products and provide efficient and convenient financial services for market participants to use RMB in foreign trade and economic activities and international cooperation.

The people's Bank of China said that in the next step, it will work with relevant departments to implement the notice, strengthen business guidance for commercial banks, continuously optimize the cross-border use policy of RMB, and give full play to the role of cross-border RMB business in serving the real economy and promoting trade and investment facilitation.