By Jieyu Wang, Editor

2019 marks the 10th anniversary of the launch of the pilot RMB settlement of cross-border trade and cross-border use of RMB. According to a source from the Chongqing Business Management Department of the People’s Bank of China, over the past decade, a leapfrog development has been made in the cross-border RMB business in Chongqing. This has facilitated trade and investment, and actively promoted the construction of the open inland highland in Chongqing.

The data shows that the actual amount of cross-border payment and settlement in the whole city has soared from less than 1 billion yuan in 2010 to 92.31 billion yuan in 2018, with an average annual growth rate of 81.9%. Up to now, the cumulative settlement amount has exceeded 864 billion yuan, ranking 11th place in China and the second in the mid-western region. RMB has become Chongqing’s second-largest foreign-related currency for receipt and payment in addition to the US dollar.

As of the end of August 2019, the cumulative amount of cross-border RMB settlement for direct investment in Chongqing exceeded 100 billion yuan.

According to the head of the Chongqing Business Management Department of the People’s Bank of China, Chongqing has taken various measures to promote the cross-border use of RMB over the past ten years. For example, the Department has established a working mechanism for promoting the cross-border RMB business with such sectors as commerce, customs, and taxation; and the city’s financial institutions have developed relevant policies and assisted the related enterprises to use RMB settlement to reduce exchange costs and exchange rate risks. As of the end of August 2019, the cumulative amount of cross-border RMB settlement for direct investment in Chongqing exceeded 100 billion yuan.

In order to support the construction of such open platforms as the China-Singapore (Chongqing) Demonstrative Initiative on Strategic Connectivity (CCI), and the Chongqing Pilot Free Trade Zone (CFTZ) as well as other inland international logistics hubs, Chongqing has also applied for and acquired more than 20 cross-border RMB innovative business pilot projects, introduced a series of systems such as financial supports for the construction of CFTZ, and actively explored land trade rules. Moreover, it took the lead in exploring the development of international settlement by letter of credits and the pledge and financing business, which are based on such evidence as railway bills of lading and railway bill of lading on presentation of documents.

In addition, in recent years, Chongqing has vigorously implemented the comprehensive cross-border financing policies, actively innovated RMB trade financing, and overseas debt issuance products positively promoted the use of RMB in countries along the Belt and Road (BRI) and provided services for both incoming enterprises and outgoing ones. At present, overseas direct lending covers Chinese-funded enterprises and small and medium-sized enterprises without engaging in import and export business in Chongqing, with a total of 158.1 billion yuan of low-cost RMB funds introduced from abroad. As of the end of August 2019, the actual receipt and payment of cross-border RMB business completed between Chongqing and 81 countries along the BRI registered a total amount of 200.9 billion yuan.

Source: CQNEWS