义乌金改试点人民币跨境结算

Yiwu, China’s trade hub in Zhejiang Province, is about to see trade get much more convenient. Trade related businesses in Yiwu can now open RMB settlement accounts in local banks.

International trade in Yiwu is now easier than ever, as businesses can be settled in yuan.

Business owners welcome this new policy, as it takes away forex risks.

"I used to settle in U.S dollars and euros. We suffered 1 million yuan forex losses in the second half of last year. Now it’s just like doing businesses in China. And it saves bank transaction fees." Shen Hang, Director of Int'l Trade Company, Yiwu, said.

Yiwu is the first Chinese city to test run personal cross-border RMB settlements. Every commercial bank can offer the service.

"It’s very easy to open an account. If you are a Chinese national, just use your ID card. If you are a foreigner, just show your passport. And people from Hong Kong, Taiwan, and Macao just need to provide their travel passes." Li Yanyun, Int'l Business Dep't of Bank of China, Yiwu said.

The new policy also allows unlimited settlement amounts. This is an enormous convenience as the rest of the country still goes by a 50-thousand-U.S-dollar- cap for exchanging foreign currencies.

The bank also provides RMB services for overseas travelling, and studying. Analysts say the new policy is likely to vitalise trade and pave the way for more yuan liberalisation.