RMB trade settlement refers to the use of RMB for pricing, trade contracts, trading processes and capital transfer.
RMB trade settlement Specifically, RMB is used for international settlement, and China import and export enterprises are denominated in RMB.
Citizens can pay RMB to non-residents, who hold RMB deposit accounts for cross-border settlement.
The first question of RMB trade settlement is whether overseas importers and exporters are willing to accept RMB, especially when overseas importers have a large amount of RMB to pay.
As early as 1990s, China and neighboring countries began to use RMB for settlement in border trade. So far, China has signed local currency settlement agreements for border trade with the central banks of eight countries, including Viet Nam, Mongolia, Laos, Nepal, Russia, Kyrgyzstan, North Korea and Kazakhstan.
In recent years, with the sustained and healthy development of China's economy and the continuous improvement of opening up, the trade volume between China and neighboring countries and regions has been increasing, and the demand for expanding local currency settlement from border trade to general international trade has been increasing.
At the same time, with the increasingly close economic and trade relations between the mainland and Hong Kong and Macao, the demand for RMB trade settlement between the mainland and Hong Kong and Macao has become increasingly strong in recent years.
RMB trade settlement includes Vietnam, Mongolia, Laos, Nepal, Russia, Kyrgyzstan, North Korea, Kazakhstan, South Korea, Malaysia, Belarus, Indonesia, Argentina, Turkey, Pakistan, Russia, Nigeria, Iran, Algeria, Singapore, Britain, Canada, Germany and other countries.
With the expansion of China's financial opening to the outside world, the position of RMB in foreign exchange reserves is constantly improving, and it is believed that more and more countries can directly settle accounts in RMB.
Although the US dollar still dominates the international economy and trade, some media said that 34 countries are accelerating dollarization, which is very beneficial to the internationalization of RMB.
The implementation of RMB settlement can make import and export enterprises achieve a win-win situation and help stabilize trade demand.