Chinese Yuan Cross-Border
Trade Settlement Service

Under the pilot scheme announced by People’s Bank of China (PBOC) on 2nd July 2009, cross-border trade settlement between China and Hong Kong, Macau and 10 ASEAN countries (Singapore, Malaysia, Thailand, Indonesia, Vietnam, Philippines, Brunei, Cambodia, Laos and Myanmar) can be done in Chinese Yuan (CNY).

Criteria for Eligible Trade Transactions:

• Trade must involve underlying goods delivery;
• Transactions include Letters of Credit (LCs), Collections (DP/DA) and Open Account (including advance payment);
• Can be imports or exports;
• Trade must be between a customer (as importer or exporter) of UOB in Singapore and a pilot enterprise* in China. You are required to provide the necessary supporting documents to confirm that it is an eligible trade transaction.

* Pilot Enterprise is defined as a company incorporated in China that is approved by the relevant authorities in China to be a pilot enterprise under this cross-border trade settlement scheme. It includes local Chinese companies (state-owned enterprises, private-owned enterprises) and MNCs.

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