Cross Border Trade RMB Settlement Quanzhou Shoe Enterprises Enjoy Benefits

　　 近来人民币升值预期不断增强，对于经常使用美元进行贸易结算的进出口企业来说将面临更加严峻的汇率风险。如果能够绕过美元，直接通过人民币来与海外买家进行结算，这样对企业来说不仅提前锁定了成本和收入，还避免了不小的汇率风险。

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 port city for Industry and trade, Quanzhou's import and export trade accounts for a large proportion of GDP in the whole city. In 2009, the total value of foreign trade and import and export amounted to US $8 billion 180 million. At present, the city has nearly 5000 foreign trade enterprises enjoying the right to import and export business.

According to the insiders, developing cross-border trade RMB settlement is of great significance for promoting the development of Quanzhou's foreign trade economy.