Which countries can use cross-border RMB payments?

Which countries can use cross-border RMB payments?

At present, the RMB is the second largest cross-border payment currency in China, and the cross-border payment of RMB accounts for more than a third of the cross-border payment of Chinese domestic and foreign currency. Globally, the RMB has become the world’s fifth largest international payment currency and official foreign exchange reserve currency. Wire Terminal Blocks, D Sub Connectors and Plastic Road Studs also can do this way.

According to the latest data released by the International Monetary Fund (IMF), the total foreign exchange reserves of the RMB rose to $244.52 billion in the third quarter of 2020 from $233.09 billion in the second quarter, achieving seven consecutive quarters of growth, and the RMB’s share of global foreign exchange reserves rose to 2.13.

Since 2008, China has signed bilateral local currency settlement agreements with nine neighboring countries, such as Vietnam, Laos, Russia, Kazakhstan and countries along the “Belt and Road “, and signed bilateral local currency swap agreements with 23 neighboring countries, such as Russia, Indonesia, the United Arab Emirates, Egypt and Turkey, and countries along the” Belt and Road “route.

According to the central bank’s August 2020 report, the RMB has been directly traded with the currencies of nine neighboring countries, such as the Malaysian ringgit, the Singapore dollar, and the Thai baht, and the national currencies along the “Belt and Road “, and regional transactions with three national currencies, such as the Cambodian Ruier.

More and more European customers are willing to use the RMB as a currency of payment.

So when negotiating cooperation, you might as well ask the buyer: do you accept RMB quotation and payment?

05 RMB is said to have the risk of an account?

Many foreign trade people have heard and even experienced such things:

Customers said they could find someone to pay for RMB, so export enterprises agreed to use domestic private accounts to collect RMB payment, did not expect a few days later, the account was frozen by the economic investigation brigade in different places.

Asked the bank, the bank said it was frozen by the economic investigation brigade in different places. They could not thaw and needed foreign trade personnel to cooperate with the public security work, including providing some information about real transactions. (Including the guest’s passport, contact information, etc- Think about it, how many guests are willing to cooperate in providing materials?) As for when to thaw, we need to wait for news, some people even sealed it for more than a year!

The most common reason for such a problem is that the guest’s RMB has a problem, not necessarily that the guest is doing illegal activities, but some guests are convenient, looking for foreign exchange channels have problems, but he does not know.

In fact, as early as February 2019, the state has legislated against underground banks. In 2020, the People’s Bank of China issued the Circular of the People’s Bank of China on the Pilot Project on Large Cash Management, and decided to launch a pilot project on large cash management in Hebei, Zhejiang and Shenzhen from July 2020.

The pilot period is 2 years, first carried out in Hebei Province, then extended to Zhejiang Province, Shenzhen City: from July 2020, Hebei Province began to pilot; from October 2020, Zhejiang Province, Shenzhen City began to pilot. The starting point of local public account management amount is 500000 yuan, and the starting point of private account management amount is 100000 yuan in HebeiProvince, 300000 yuan in ZhejiangProvince and 200000 yuan in ShenzhenCity.

Among them, ZhejiangProvince focuses on wholesale and retail, real estate sales, construction, auto sales industry,focusing on the authenticity of the withdrawal link and subsequent use. Shenzhen focuses on the control of operating income and expenditure behavior using personal accounts, subdividing the sources and uses of operating income and expenditure of personal accounts, and monitoring the cash business situation of RMB abroad.

Therefore, when receiving the payment of RMB in the customer’s territory, it is best to pay attention to whether it has passed the so-called “agent” or “third party “, try to let the guest pay with his own account, or ask the guest clearly. Avoid receiving money from unknown sources to ensure the safety of the account.

Post time: Jan-13-2021