Facilitation for Cross-Border RMB Settlement
2013-August-2 Source: Newsgd.com
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In order to further enhance the efficiency of cross-border RMB settlement and facilitate financial institutions (“banks”) and enterprises to conduct the cross-border settlement in RMB, the People’s Bank of China issued Circular on Simplifying the Procedures for Cross-border RMB Business and Improving Relevant Policies (“Circular”) on July 5, 2013.

Under the Circular, if an enterprise needs the RMB settlement entering into account immediately, banks may handle it first and examine the authenticity of the trade later. Domestic non-financial institution may provide overseas guarantee in RMB in accordance with Property Law, Surety Law and other laws and regulations. Banks may handle the RMB settlement after examining the authenticity and submit the relevant information to the cross border RMB settlement management system. The non-financial institution may use its overseas RMB to perform the obligation directly.

The Circular also allows the non-financial institution to provide overseas RMB loan and issue RMB bond outside China.

(This information is provided by Lawyer Kelly Xie from Guangdong KaiTong Law Firm in friendship. It is not any legal opinion or legal grounds addressed to any organization or individual. For inquiry, please contact Kelly via email at Kelly_xie@ktlf.com.cn or by phone on 13926185641.)

Editor: Olivia
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