Recent Developments in RMB Cross-Border Settlements
21 July 2011
Mayer Brown JSM Legal Update
To speed up the internationalisation of Renminbi (RMB) as a currency to settle cross-border transactions of capital account items, the Ministry of Commerce (MOFCOM), the State Administration of Foreign Exchange (SAFE) and the People's Bank of China (PBoC) have issued a series of administrative circulars since January 2011. These recent developments have put jigsaw puzzles together in respect of using RMB to settle not only such current account items as cross-border commodity trade and services but also such capital account items as inbound foreign direct investment (FDI), outbound direct investment (ODI) and shareholder loans.