Cross Border Renminbi (RMB) Settlement Services

Currently, a revolution is ongoing for trading with China.

Since mid-2009, the pilot program of Renminbi (RMB) Settlement of Cross-border Trade Transactions was approved by the State Council and started officially. Till now, all the companies who are qualified for export and import business are allowed to conduct RMB settlement.

The People's Bank of China (PBOC) is continuously promoting the pilot program to gradually achieve internationalization of RMB:

  • Cross Border RMB Settlement is applicable globally for trading with counterparties in Mainland China.
  • Documentation requirements for Cross Border RMB Settlement have been significantly simplified, and more and more innovative financial solutions are being launched under Cross Border RMB Settlement scheme.

How to Grasp Opportunity

For Corporate and FI clients, how to grasp this opportunity?

No matter buying or selling to China, you will be benefited:

  • Transparent pricing and locked-in cost
  • Reduced foreign exchange cost and risk
  • Reduced settlement cycle
  • Widened supplier and dealer base to enhance competitive advantage

Along with the increase of demand for offshore RMB, cooperation with Standard Chartered Bank will help you meet increasing demand of RMB of your clients:

  • Settlement of international trade
  • RMB cash management services (including payment/collection and liquidity management)
  • RMB deposits held in mainland China may get higher yield than offshore deposits

Standard Chartered Bank has professional teams globally with RMB expertise, strong network and product capabilities, which will help you grasp opportunities in the fast-changing market.

Standard Chartered Bank can facilitate clients to open and manage RMB accounts in multiple countries and regions, covering China, Hong Kong, Indonesia, Malaysia, Philippines, Singapore, Thailand, UAE, and etc, and provide RMB settlement and account services for you and your clients.

Benefits

Benefits for Corporate Clients

For corporate buying from China, maintaining RMB account will help achieve:

  • Transparent pricing: the entire cycle of international trade will be settled in RMB, so there will be no additional cost incurred by change of foreign exchange rate.
  • Closer relationship with suppliers: China suppliers do not need to open EFV account for export collection, and can get faster tax refund, and so can reduce the total cost of the supply chain.
  • Widened supplier base: corporate clients can now trade with China suppliers who do not have access to foreign exchange.

For corporate selling to China, maintaining RMB account will help achieve:

  • Reduced risk: Settlement in RMB is natural hedge for those running 2-way trade.
  • Enhanced control: Corporate can proactively manage foreign exchange risk.
  • Enhanced effectiveness of working capital management: Settlement in RMB can save buyers in China the time and effort of converting RMB to USD, this can speed up the payment process and reduce Days Sales Outstanding (DSO).
  • Widened client base: Corporate can now trade with China buyers who do not have access to foreign exchange.
  • Enjoy competitive advantage: Not all overseas firms have the ability to receive payments in Renminbi, but those who can will enjoy a competitive advantage.
Benefits for FI Clients

Cooperation with Standard Chartered Bank will help you meet increasing demand of RMB of your clients:

  • Settlement of international trade in RMB, providing cash management service in RMB, including payment, clearance, account service and liquidity management.
  • Increased benefit with simplified RMB trade settlement processing.
  • Participating in and supporting development of cross border RMB settlement with one single action to open RMB account in Standard Chartered Bank China.
  • Leveraging opportunity of increased demand for RMB, re-positioning to offset negative impact on business incurred by decrease of settlement in USD.
  • RMB deposits held in mainland China may get higher yield than offshore deposits.
  • To understand and manage funds movement of RMB account via online banking system of Standard Chartered Bank.

Why Standard Chartered Bank?

A successful partner:

  • Good reputation: In August of 2009, Standard Chartered Bank became the first foreign bank to complete RMB cross-border trade settlement for China enterprises and the first foreign bank to conduct RMB clearing for overseas participating banks. Standard Chartered Bank has over 150 years' history in China, and is always in leading position in trade settlement.

  • Wide coverage: Standard Chartered Bank is one of the foreign banks with widest coverage in mainland China. As local clearing bank for RMB, Standard Chartered Bank can provide quotation and settlement service with one single RMB account.

  • Professional knowledge: Standard Chartered Bank understand China and its fast-changing business requirements, which can help you grasp opportunities arising from trade markets and regulatory changes. If your trade partners want to understand latest development of cross border RMB settlement, Standard Chartered Bank can provide relevant information.

  • Strong liquidity: Standard Chartered Bank possesses strong network and product capabilities in China, with which you do not need to worry about RMB liquidity. Standard Chartered Bank can offer you a variety of RMB bonds and other investment products, and can help you mitigate any foreign exchange risk.

  • Fast and reliable information channel: Online banking system of Standard Chartered bank eases the transmission of RMB settlement instruction and data exchange.

FAQs

To download full version of FAQs

    • What types of enterprises can conduct cross border RMB settlement with China?

      Cross Border RMB Settlement is applicable globally for all enterprises trading with counterparties in Mainland China.

    • What services can Standard Chartered Bank offer outside mainland China?

      • RMB account service
      • 2-way foreign exchange services for corporate accounts under trade settlement
      • Payment - Remittance and Collection
      • Trade settlement and financing services - Issuance of letter of credit and trade financing

    • Can we open RMB account in Standard Chartered Bank?

      Yes. You can open RMB accounts for trade settlement in Standard Chartered Bank of many countries. Details please refer to your Relation Manager and Product Sales consultant.

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