OREANDA-NEWS. December 10, 2012. In the past few days, under the common efforts made by China Bank and Foreign-funded Bank, the first RMB settlement business received payments of cross-border trade has come to the appointed account, thus, the first RMB settlement business of cross-border trade is completed and RMB settlement has become the new mode of export transactions of our company, reported the press-centre of TISCO.   
      
In June, 2012, China Bank promulgated“Lists of Key Supervision and Management of Enterprise of Export Goods Trade RMB Settlement”and the enterprise who is entitled to own the right of import and export within China Border is allowed to perform RMB settlement of export goods trade. When TISCO was heard, the first order of RMB settlement was placed and RMB settlement of cross-border business was successfully completed.
      
There are five advantages of RMB settlement of cross-border trade as below: first of all, the risk of exchange rate can be averted. RMB is the domestic currency of resident enterprise and the international trade based upon the RMB pricing can help enterprises avert the risk of exchange rate; second, reducing the operational cost, and currency consistency of contract pricing and enterprise operation can make the enterprises realistically comprehend the transaction cost and income before placing the order in order to enhance the significance of decision-making by enterprises, and simultaneously, the costs of foreign currency derivatives and double foreign exchange transactions can be lessened; third, accelerating the turnover of capital, and the currency consistency for trading capital and production capital will abate the handling charges of exchange and the links of cash flow, accelerating the enterprise settlement and turnover of capital, improving the availability factor of enterprise capital to enable the enterprise so as to manage the enterprise capital efficiently; fourth, simplifying the process of export and the cross-border RMB settlement of pilot enterprises will not be brought into the verification management of foreign exchange and you do not need to submit the verification sheet of foreign exchange while   the clearance of goods and tax refund or tax exemption for export goods is done; fifth, broadening the financing channel and settlement of RMB cross-border can widen the financing channel of the enterprise and the collocation variety of enterprise assets liability in order to make the enterprise obtain more favorable trading condition during negotiation with the trade rival.