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ICBC Cross-border RMB Service Forum

ICBC’s cross-border RMB business refers to the cross-border settlement business and related financial services that are denominated in RMB and used as a means of payment. Generally speaking, cross-border RMB settlement is to replace the foreign currency in external settlement with RMB, so that enterprises have one more choice of currency when handling settlement. Enterprises of all provinces and municipalities (autonomous regions) in China can conduct cross-border RMB settlement business with all countries and regions in the world, covering cross-border trade in goods, services and capital accounts.

Business advantages:

● Avoid exchange rate risk. In the past, the import and export of domestic enterprises could only be settled in US dollar or a third-party currency. In the context of the current drastic turmoil in the international financial market, the exchange rate of various currencies fluctuates, and enterprises are prone to losses in foreign exchange transactions. Since RMB is the local currency of domestic companies, international trade denominated in RMB can help companies protect against exchange rate risks.

● Reduce operating costs. Domestic enterprises using RMB for international settlement do not need to deal with foreign exchange settlement and sale, and enterprises have no exchange losses, which reduces operating costs and reduces foreign exchange derivatives and double foreign exchange transaction costs.

● Enjoy export tax rebates. All export trade settled in RMB can enjoy the national tax refund (exemption) policy for export goods in accordance with relevant regulations.

● It is convenient for financial accounting. The contract denomination currency is consistent with the enterprise's operating currency, and enterprises can actually know the transaction cost and income before signing the contract, which can improve the effectiveness of enterprise decision-making.

● Improve the efficiency of funds. The currency consistency of trade funds and production funds reduces exchange procedures and capital flow links, speeds up enterprise settlement and capital turnover, improves the efficiency of enterprise capital use, and enables enterprises to manage funds more effectively.

● Complete liquidation channels, strong scientific and technological strength, complete financial brands, perfect overseas network layout.