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 multi-national corporation (MNCs).
Our range of export-related services includes the following:
- Agreement to settle in CNY can help you get more business as China enterprises are likely to prefer CNY settlements
- China economy is still growing amid the global economic slowdown; holding CNY can be a benefit
- CNY has been appreciating in the past one year to the advantage of exporters