China takes first step
The Bank of China, the largest foreign exchange bank in China, announced that it had completed the first cross-border yuan trade settlement deal Monday morning. This was the first major step of the pilot program that will allow companies to settle imports and exports in the yuan in selected areas. The first cross-border trade is also a crucial step towards internationalizing the currency.
The ceremony of the first cross-border yuan trade settlement in Shanghai could facilitate trade between China, neighbouring countries, and regions that could help avoid exchange rate risks. The trade could also help simplify trading procedures, reduce operation costs, allow banks to expand business, and improve service.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.