Chinese Yuan Account Services

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Regulations

PBOC announced the following updates to the CNY cross-border trade settlement pilot programme which came into effect on 17 June 2010:

  1. Cross-border trade settlement in CNY is no longer restricted to Hong Kong, Macau and ASEAN. All countries can now trade in CNY with China under the framework of the pilot programme.
  2. Apart from Shanghai and Guangdong province, the following provinces (autonomous regions and municipalities) have been included in the pilot programme:
    • Beijing, Tianjin, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Jiangsu, Zhejiang, Fujian, Shandong, Hubei, Guangxi, Hainan, Chongqing, Sichuan, Yunnan, Tibet and Xinjiang.
  3. Only the approved pilot enterprises in these approved pilot cities/provinces can receive CNY for their export trade under the framework of the pilot programme.
  4. Pilot companies in pilot cities/provinces can conduct import trade, non-trade transactions and other settlements under current items in CNY.
  5. All companies in the approved pilot cities/provinces can settle their import payments in CNY.

What does this mean to you?

  • Cross-border trade settlement in CNY is now expanded to more provinces.
  • You can now sell in CNY to all companies in the approved provinces and receive CNY into your CNY bank accounts with UOB Singapore.  This applies to trading of physical goods, service trade and other current account settlements.
  • You can pay in CNY to approved pilot enterprises in the approved pilot cities/ provinces.

Services offered under this pilot scheme

UOB can provide the following services:

Chinese Yuan Current Account Opening:

  • For the purpose of facilitating eligible trade transactions between you and the eligible pilot enterprises

Trade Transactions:

  • Issue and receive LCs denominated in CNY
    - Settlement will only be carried out after receipt of compliant documents
  • Handle trade collections in CNY
  • Provide customers with FX rates for settlement of trade transactions

Trade Related Payments:

  • Send and receive trade related payments (MT103) in CNY
  • Provide customers with FX rates for settlement of trade related payments

FX Rates:

  • Competitive buying and selling rates for CNY (value spot)
  • No forwards

Benefits

  • Agreement to settle in CNY may help you to get more business as China enterprises are likely to prefer CNY settlements
  • China economy is still growing amid the global economic slowdown; holding CNY may be a benefit
  • CNY has been appreciating in the past one year to the advantage of exporters

Promotions

If you open your Chinese Yuan corporate current account between 8 February and 31 August 2010 (promotion period), you will enjoy waiver of charges on your incoming Chinese Yuan telegraphic transfers into the account during the promotion period.

More Information

For more information on Chinese Yuan Account Services, contact:

UOB Transaction Banking
80 Raffles Place, #05-00, UOB Plaza 1,
Singapore 048624
Tel: (65) 6539 8704
Fax: (65) 6536 7488
Email: TransactionBanking@UOBgroup.com

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