OREANDA-NEWS. February 14, 2011. To support the pilot program of RMB settlement for cross border trade, to facilitate RMB-denominated overseas direct investment by domestic enterprises, and to standardize the RMB settlement business of banks for overseas direct investment, the PBC released the Provisional Rules for the Pilot Program of RMB Settlement for Overseas Direct Investment recently to allow the banks and enterprises in those pilot regions to make overseas direct investments in RMB, reported the press-centre of PBC.

According to the Provisional Rules for the Pilot Program of RMB Settlement for Overseas Direct Investment, domestic enterprises which have won approval for overseas direct investments can make such investments with RMB funds. Banks can directly process RMB settlements for enterprises in accordance with the approval documents issued by the competent authority for overseas direct investments. The relevant financial service procedures have been simplified. PBC, SAFE and administrative authority for overseas direct investments has put in place an information sharing and regulatory cooperation mechanism to strengthen the ex post regulation and commercial banks’ responsibility for authenticity verification.

The steady progress of RMB settlement for overseas direct investment will enhance RMB’s usage in cross border trades and investment, thus better support Chinese enterprises to go abroad and facilitate trades and investments.