China unveils measures to expand cross-border RMB use

Chinese authorities have rolled out multiple measures to support the expansion of cross-border use of renminbi (RMB) by companies engaged in foreign trade and economic exchanges.

The move aims to further facilitate RMB utilization in cross-border trade and investment in a bid to better meet the needs of foreign-trade related companies regarding transactions and settlement, investment and financing, and risk management, according to a circular jointly released by the Ministry of Commerce and the People's Bank of China.

The circular called for efforts to facilitate RMB pricing and settlement in all types of cross-border trade and investment, and urged banks to provide more convenient and efficient settlement services.

Banks are also encouraged to extend overseas RMB-denominated loans and actively innovate products and services.

It also underlined the importance of opening-up platforms in boosting cross-border RMB use, including pilot free-trade zones, the Hainan Free Trade Port, and overseas economic and trade cooperation zones.

Efforts should also be made to enhance support in business matchmaking, financial planning and risk management based on the needs of enterprises, the circular added.