October 23, 2010
Trade settlement in Yuan benefits China-ASEAN FTA
Report from the 7th China-ASEAN Expo
Aided by the Zero-Tariff framework under the CAFTA established on January 1, the annual event attracted more than 2,000 enterprises from home and abroad this year, occupying up to 4,600 exhibition booths, a 15% increase from last year.
Li Dongrong, assistant governor of the People’s Bank of China, the central bank, said at the 2nd China-ASEAN Summit Forum on Financial Cooperation & Development, which was held during the Expo, that the establishment of the CAFTA not only laid a solid foundation for the regional development of financial cooperation, but also signals great potential for future financial cooperation between China and ASEAN countries.
Li said, “Now the RMB purchase and sales transactions are becoming more active and the bank settlement network is also expanding. These all make companies’ investments easier and will promote mutual economic cooperation between China and ASEAN countries.”
In July 2009, 5 major trading cities, including Shanghai and Guangzhou, have received the nod from the Chinese central government to use the Yuan in overseas trade business, seen as one more step in China’s moves to expand the use of its currency globally.
By July this year, the pilot areas had expanded to include 18 provinces, autonomous regions and municipalities. Both Guangxi Zhuang Autonomous Region and Guangdong Province were included. By September 30 this yr, cross-border Yuan trade settlement in the country had reached 197.1B Yuan(about US$29.5B). Guangxi alone achieved 5B Yuan, with more than 90% of the companies based in ASEAN.
“The central bank will continue to expand yuan trade settlement to make cross border trade and investment more convenient, and will also continue to sign foreign currency swap agreements with relevant countries,” Li added.
Edith Cheong Choy Hoong, assistant executive director of the global business division of the Singapore Business Federation, told Xinhua that although USD’s remain the most popularly used International trade settlement currency, the Chinese Yuan is gradually internationalizing and this is good for regional economic development and eventually will be good for the world’s economy.
“We live at a time of accelerated adjustment in the international political and economic landscape and major opportunities in the development of Asia. The future and destiny of China and ASEAN countries are increasingly closely linked with each other,” Jia Qinglin, chairman of the National Committee of the Chinese People’s Political Consultative Conference, said Tuesday at the opening ceremony of the 7th China-ASEAN Business and Investment Summit.
China and ASEAN together constitute an influential Powerhouse in the World’s economy, Vice President of the Republic of Indonesia Boediono said at the opening ceremony of the 7th China-ASEAN Expo.
Boediono noted: “For almost 2 decades, China has been a reliable partner and played an important role in many of ASEAN’s ventures. Now, China presents more opportunities for ASEAN. Likewise, the prosperity and stability of ASEAN are also beneficial to China.”
China and ASEAN have vastly increased investment and trade between themselves in recent years, especially after CAFTA was established on January 1, 2010.
With a population of 1.9B, CAFTA is the World’s 3rd largest FTA, after the North American FTA and the European FTA, in terms of trade volume, which is estimated at US$4.5T this year and a combined gross domestic product (GDP) of US$6T.
read more @
http://www.livetradingnews.com/trade-settlement-in-yuan-benefits-china-asean-fta-25678.htm
Trade settlement in Yuan benefits China-ASEAN FTA
Report from the 7th China-ASEAN Expo
Aided by the Zero-Tariff framework under the CAFTA established on January 1, the annual event attracted more than 2,000 enterprises from home and abroad this year, occupying up to 4,600 exhibition booths, a 15% increase from last year.
Li Dongrong, assistant governor of the People’s Bank of China, the central bank, said at the 2nd China-ASEAN Summit Forum on Financial Cooperation & Development, which was held during the Expo, that the establishment of the CAFTA not only laid a solid foundation for the regional development of financial cooperation, but also signals great potential for future financial cooperation between China and ASEAN countries.
Li said, “Now the RMB purchase and sales transactions are becoming more active and the bank settlement network is also expanding. These all make companies’ investments easier and will promote mutual economic cooperation between China and ASEAN countries.”
In July 2009, 5 major trading cities, including Shanghai and Guangzhou, have received the nod from the Chinese central government to use the Yuan in overseas trade business, seen as one more step in China’s moves to expand the use of its currency globally.
By July this year, the pilot areas had expanded to include 18 provinces, autonomous regions and municipalities. Both Guangxi Zhuang Autonomous Region and Guangdong Province were included. By September 30 this yr, cross-border Yuan trade settlement in the country had reached 197.1B Yuan(about US$29.5B). Guangxi alone achieved 5B Yuan, with more than 90% of the companies based in ASEAN.
“The central bank will continue to expand yuan trade settlement to make cross border trade and investment more convenient, and will also continue to sign foreign currency swap agreements with relevant countries,” Li added.
Edith Cheong Choy Hoong, assistant executive director of the global business division of the Singapore Business Federation, told Xinhua that although USD’s remain the most popularly used International trade settlement currency, the Chinese Yuan is gradually internationalizing and this is good for regional economic development and eventually will be good for the world’s economy.
“We live at a time of accelerated adjustment in the international political and economic landscape and major opportunities in the development of Asia. The future and destiny of China and ASEAN countries are increasingly closely linked with each other,” Jia Qinglin, chairman of the National Committee of the Chinese People’s Political Consultative Conference, said Tuesday at the opening ceremony of the 7th China-ASEAN Business and Investment Summit.
China and ASEAN together constitute an influential Powerhouse in the World’s economy, Vice President of the Republic of Indonesia Boediono said at the opening ceremony of the 7th China-ASEAN Expo.
Boediono noted: “For almost 2 decades, China has been a reliable partner and played an important role in many of ASEAN’s ventures. Now, China presents more opportunities for ASEAN. Likewise, the prosperity and stability of ASEAN are also beneficial to China.”
China and ASEAN have vastly increased investment and trade between themselves in recent years, especially after CAFTA was established on January 1, 2010.
With a population of 1.9B, CAFTA is the World’s 3rd largest FTA, after the North American FTA and the European FTA, in terms of trade volume, which is estimated at US$4.5T this year and a combined gross domestic product (GDP) of US$6T.
read more @
http://www.livetradingnews.com/trade-settlement-in-yuan-benefits-china-asean-fta-25678.htm
