Under the pilot scheme announced by People's Bank of China (PBOC) on 2nd July 2009, cross-border trade settlement between
China and Hong Kong, Macau and 10 ASEAN countries (Singapore, Malaysia, Thailand, Indonesia, Vietnam,
Philippines, Brunei, Cambodia, Laos and Myanmar) can be done in Chinese Yuan (CNY).
Criteria for Eligible Trade Transactions:
Trade must involve underlying goods delivery;
Transactions include Letters of Credit (LCs),
Collections (DP/DA) and Open Account (including advance payment);
Can be imports or exports;
Trade must be between a customer (as importer or exporter) of UOB in Malaysia
and a pilot enterprise* in China.
Customers are required to provide the
necessary supporting documents
(invoice or sales contract) to confirm that it is
an eligible trade transaction.
* Pilot Enterprise is defined as a company incorporated in China that is approved by the relevant
authorities in China
to be a pilot enterprise under this cross-border trade settlement scheme.
It includes local Chinese companies (state-owned enterprises, private-owned enterprises) and
MNCs.
Benefits
Agreement to settle in CNY may help our customers get more business as China
enterprises are likely to
prefer CNY settlements
China economy is still growing amid the global economic slowdown; holding CNY may be a benefit
CNY has been appreciating in the past one year to the advantage of exporters
Service offered under this pilot scheme
UOB can provide the following services:
Chinese Yuan Current Account Opening:
For the purpose of facilitating eligible trade transactions between you and the
eligible pilot enterprises
Trade Transactions:
Issue and receive LCs denominated in CNY
-Settlement will only be carried out after receipt of compliant documents
Handle trade collections in CNY
Provide customers with FX rates for settlement of trade transactions
Trade Related Payments:
Send and receive trade related payments (MT103) in CNY
Provide customers with FX rates for settlement of trade related payments
FX Rates:
Competitive buying and selling rates for CNY (value spot)
No forwards
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