China’s first cross-border yuan settlement done by Bank of China
06 Jul 2009
The Bank of China (BOC), China's largest foreign exchange bank, said it had transacted the first cross-border yuan trade settlement deal on Monday.
The Shanghai branch of BOC received the first cross-border yuan trade settlement deal from the BOC (Hong Kong) on Monday, said BOC, but did not specify the amount of the settlement.
The payee was Shanghai Electric International Economic and Trading Co. Ltd., a subsidiary company of Shanghai Electric Group Co. Ltd., and the remitter was the company's business partner in Hong Kong, said the BOC in a statement on its website.
The Shanghai branch of The BOC had signed tentative agreements on yuan trade settlement deals with 11 overseas agent banks, which had yuan settlement demand from companies, including Standard Chartered (Hong Kong), Bank of East Aisa (BEA), Hong Kong-based Wing Hang Bank and others, said The BOC.
At the ceremony of the first cross-border yuan trade settlement held in Shanghai on Monday, Li Lihui, president of the BOC, said that the deal could facilitate trade between China and neighboring countries and regions and help enterprises avoid exchange rate risks.
Li added that "Cross-border yuan trade settlement could help firms simplify trading procedures and reduce operation costs. It could also help banks to expand business scope, improve service, and forge stronger ties with enterprises."