Bank of China launches first batch of currency exchange facilitation services at Hainan Free Trade Port
The "Notice on Further Optimization of the RMB Cross-Border Policy to Support the Stabilization of Foreign Trade and Foreign Investment" entered into force. On the first day of the New Deal, Hainan Zhongyi served several checking accounts and cross-border investment and finance companies totaling nearly RMB 300 million. After the introduction of the New Deal, the central branch of the People's Bank of China in Haikou immediately issued implementation opinions, in conjunction with the relevant industry authorities in Hainan, to fine-tune the business process of cross-border trade investment and financing, and further increase investment and financing of market participants in cross-border trade.
The convenience of using the RMB for local settlements has made it possible to realize a higher level of opening of the Hainan Free Trade Port. The new course significantly simplified international trade settlement, settlement of projects with foreign contracts, the use of capital in RMB, internal capital reinvestment, profit reinvestment and overseas lending, effectively improving the quality of customer service and the efficiency of corporate capital turnover. Before the New Deal, when the client used cross-border RMB capital for domestic reinvestment, both the investor and the financier had to re-evaluate the size of their business and a dedicated account had to be opened to receive the respective funds. The new course removed the corresponding requirements for financiers to register for internal reinvestment and open special accounts, which significantly reduced processing procedures for a client's business and covered sunk costs.
From an international perspective, there are still many volatilities reported, especially financial market risks posed by the impact of the epidemic. The implementation of the New Deal will help take full advantage of RMB settlements, help companies avoid exchange rate risks and save financial costs. “Following the implementation of the New Deal, using cross-border RMB capital for domestic reinvestment, the business process has become much easier than before. In particular, for processing companies, the requirement to open a special receiving account is waived and shareholders can only be credited to a general checking account. Facilities. Thus, the efficiency of corporate capital turnover increases, and financial costs are imperceptibly reduced. It is reported that as the leading self-discipline mechanism bank in Hainan Province, BOC Hainan has always attached great importance to the cross-border use of the yuan.
Under the leadership of the Haikou Central Branch of the People's Bank of China, he led the development of a plan to promote cross-border RMB settlement for high-quality enterprises in a self-discipline mechanism in Hainan Province and published a list of high-profile corporate clients actively promoting a higher-level pilot project. simplification of trade and investment settlements in RMB within the jurisdiction. Last year, the bank's international settlements in yuan accounted for almost 50% of the province's settlements. The relevant person in charge of the Hainan Bank of China said that the implementation of the new cross-border yuan policy is of great importance for further promoting the internationalization of the yuan and promoting the new development model of the domestic and international double cycles.
In the future, Hainan Bank of China will continue to steadily provide high-quality cross-border RMB basic services to clients in the free trade port, so that policy dividends can benefit the local real economy as soon as possible and in cross-border relations. area, encourage more market players to use RMB to settle cross-border transactions, actively take advantage of global activities and contribute to the financial construction of the Hainan Free Trade Port.
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Created: 19 March 2021