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BOC completes first cross-border yuan settlement

(Xinhua)
Updated: 2009-07-06 11:16

BEIJING: The Bank of China (BOC), China's largest foreign exchange bank, announced Monday that it had completed the first cross-border yuan trade settlement deal Monday morning.

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The BOC said its Shanghai branch had received the first cross-border yuan trade settlement deal from the BOC (Hong Kong) Monday.

The payee was Shanghai Electric International Economic and Trading Co. Ltd., a subsidiary company of Shanghai Electric Group Co. Ltd., and the remitter was the company's business partner in Hong Kong, said the Beijing-based BOC in a statement on its Web site Monday.

The bank did not reveal the amount of the settlement in the statement.

Li Lihui, president of the BOC, said Monday at the ceremony of the first cross-border yuan trade settlement held in Shanghai that the deal could facilitate trade between China and neighboring countries and regions and help enterprises avoid exchange rate risks.

"Cross-border yuan trade settlement could help firms simplify trading procedures and reduce operation costs. It could also help banks to expand business scope, improve service, and forge stronger ties with enterprises," Li added.