In 2021, foreign trade people were all the way to the singing RMB exchange rate lost their temper, many friends in the background message asked how to use cross-border RMB to receive money, here is the ultimate summary. Terminal Connectors, 2 Pin Connectors, Mini Reflectors field can start cross-border RMB.
Why use cross-border RMB?
What are the benefits of receiving goods in cross-border RMB? For foreign trade people the most direct, the most important reason is to be able to avoid exchange rate risk —— whether the exchange rate is up or down, I will not get less yuan. Most foreign trade companies do not seek exchange rates to make money, but not to eat profits.
In the current general forecast of RMB appreciation environment, it is more important to avoid risk through cross-border RMB.
Why are you saying that? An important reason is that the United States opened the crazy money printing machine last year. In order to save the economy, the speed of printing money in the United States in 2020 was the first in history, even more than the 2008 financial crisis. From January to November 2020, the money supply of the United States increased by nearly 24 percent!
And the crisis that the United States overissued currency passes on, need global to undertake together. Because the dollar is the international settlement currency and the world’s most important foreign exchange reserve currency. In the dollar-centric financial system, every country shares inflationary pressures for the United States.
Reuters’ recent survey of 85 foreign exchange analysts shows that in the short and medium term, all factors conducive to the appreciation of the yuan will continue, and the yuan is expected to rise to about 6.4 yuan by the end of 2021.
Forecasting may also be inaccurate, but if you use RMB to collect foreign exchange, you can once and for all.
Another benefit of using cross-border renminbi is that cross-border renminbi can save exchange costs, trade financing costs, and thus reduce financial costs.
Mr. Huang Hanzhou, who has been doing business in Southeast Asia all the year round, said that if you quote in US dollars, a single 3.5% exchange rate difference is necessary for doing business with Indonesia, Thailand, Myanmar, Cambodia and other countries, because the exchange rates announced by the central banks, customs and private exchange rates are different. At this point, it is recommended that cross-border RMB export declaration be used to avoid this loss.
Another positive is the official announcement of the people’s Bank of China on January 4, which, together with the State Development and Reform Commission, the Ministry of Commerce, the SASAC, the Banking and Insurance Regulatory Commission and the Foreign Exchange Bureau, jointly issued the notice on further optimizing the cross-border RMB policy to support stable foreign trade and stable foreign investment, which will come into effect on February 4,2021.
The Circular comprises five parts, covering five aspects: promoting higher levels of trade and investment RMB settlement facilitation around real economic needs, further simplifying the cross-border RMB settlement process, optimizing the management of cross-border RMB investment and financing, facilitating the cross-border receipt and payment of RMB under personal current account, and facilitating the use of RMB bank settlement accounts by foreign institutions.
The fundamental starting point and foothold of the new regulations is to solve the problem of difficult and painful points reflected by the main body of the market, to open up the “last kilometer” of the policy landing, and to continuously improve the level of facilitation of cross-border RMB settlement under the premise of controllable risks. Improve the sense of acquisition and satisfaction of enterprises.
For example, it is proposed that “a higher level of trade and investment facilitation pilot project should be carried out nationwide “. On the basis of the” Three Principles of Exhibition Industry “, domestic banks can directly handle cross-border RMB settlement of goods trade and services trade for high-quality enterprises on the basis of the “cross-border RMB settlement / payment statement” or the receipt and payment instructions submitted by high-quality enterprises. Before that, the above measures were only pilot in the free trade zone.
Post time: Jan-11-2021