The Shanghai Free Trade zone on Tuesday saw its first concrete measures used to streamline cross-border payments in RMB.
Five online payment companies including 99bill.com and five commercial banks are among the first in China to provide the services. The change means that more and more RMB price tags will be seen on international e-commerce websites, and transactions can be settled in the yuan. That’s expected to boost overseas purchases by Chinese consumers, especially when the yuan is going strong.
Analysts say the measure also will shorten the duration of international transactions, and reduce negative impacts from exchange rate volatilities.
" Agricultural products sold from Taiwan to the mainland usually take about three weeks in settlement. But now it would only take a few days for the money to reach accounts. As the yuan appreciates, the buying power of Chinese consumers would be increased." Guan Guoguang, Director of Boardl, A Payment Company said, "They will become welcomed consumers everywhere and in every sector, including schools, and travel. Payments would all be carried out in RMB. "
Source: CCTV
