China Allows Companies to Settle Trade in RMB

China has just made another big step in the internationalization of its local currency, the renminbi (RMB) or yuan, recently. Under the new regulations released by the People’s Bank of China (PBC), trading entities all over the world can now settle trade in RMB subject to local restrictions.

According to the “Circular on Issues Concerning the Administration of Enterprises Settling Goods Export in RMB (yinfa [2012] No.23)” co-issued by the PBC, Ministry of Finance, Ministry of Commerce, General Administration of Customs and Banking Regulatory Commission on February 3, all China-based enterprises with import and export qualifications are allowed to settle their goods exports in RMB.