According to Reuters, American president posted a Twitter on Jan 1st, blaming Pakistan that the country refused to cooperate with America on the anti-terrorism action. And the USA government decided to stop pecuniary assistance to Pakistan.
RMB Is Used For
Bilateral Trade With China
After that, State Bank of Pakistan announced that the Pakistani government would use RMB instead of US dollars in bilateral trade with China.
However, CNBC, a news media of America, reported that the Pakistani government intended to draw China -- the world’s second largest economy over to their side.
Moreover, Pakistan has signed the Currency Swap Agreement with People's Bank of China. And the Industrial and Commercial Bank of China has been approved to establish RMB settlement mechanism in Pakistan.
Internationalization of RMB
Besides from Pakistan, many other countries also begin to increase their reliance on RMB while reduce dependency on US dollars. That means the globalization of RMB are speeding up.
Venezuela, one of the largest petroleum producers, indicates that the country will not just accept dollars for selling petroleum and gold. Before long, it may be allowable that purchasing petroleum directly from Venezuela by RMB, not just in dollars or Euro.
On Jan 25th in 2015, Bank Markazi Jomhouri Islami Iran proclaimed that they would use China Yuan, Euro, Turkish lira, Russian Ruble and Korean Won in transaction with foreign countries, rather than using US dollars.
Britain has become the second largest Offshore RMB Clearing Centers in the world, ahead of Singapore.
According to the latest research report on the globalization of RMB from HSBC, proportion of RMB payment by Singapore enterprises has increased from 15% (in 2015) to 26% (in 2016). Singapore becomes the largest overseas group that uses RMB in transaction.
Korean government intends to develop Seoul into one of the largest Offshore RMB Clearing Centers in Asia, second to Hongkong.
All these are signs of the
globalization of RMB!
Q&A on RMB Payment
Is it necessary that currency type of settlement and Customs clearance is the same one?
Not necessary. If you declare Customs in CNY terms, you can also use other currency like dollars to settlement.
If I declare Customs in CNY terms but use dollars to settlement, will I have access to tax refund?
If your company’s trading datum recorded on the Service Platform of State Administration of Foreign Exchange (ASOne) are normal and correct, you can also get tax refund.
If I declare Customs and receive advance payment in dollars but receive the balance in CNY, will it affect tax refund?
No. You can also get tax refund successfully.
If the payment is finished by bank transfer in CNY in Chinese mainland, will I also have access to tax refund?
No. You cannot get tax refund if the payment is finished via bank transfer in Chinese mainland.
For more shipping and logistics information, welcome to follow HACOSLogistics! Thanks for your support!
HACOS,Business Services Solutions Master