The benefits of cross-border RMB business include:
- Reduce the exchange rate cost of enterprises and avoid exchange rate risks. Using RMB for international settlement , especially between affiliated companies, can save foreign exchange purchase and settlement costs, reduce the risk of capital mismatch, realize hedging of income and expenditure items, and directly avoid exchange rate risks.
- Simplify enterprise settlement procedures, speed up settlement, and improve capital utilization efficiency. Cross-border RMB settlement is not included in the foreign exchange write-off management, and foreign exchange write-off documents are not required. Cross-border settlement funds do not need to enter the account to be verified. Trade credit programs are registered as external debt only and are not included in external debt management. Therefore, it will simplify the capital settlement procedures of enterprises, shorten the settlement process, and improve the efficiency of capital use.