Home / Knowledge / News / Textiles / After initial euphoria, settlement in RMB slows down

After initial euphoria, settlement in RMB slows down

27
Aug '09
It is now 25 days since, China adopted the RMB for settlement of overseas trade with cross-border enterprises, but according to reports received from banks and government agencies, the volume of business is not so large.

Mr Liang Yaowen, Director of Guangdong Foreign Economic and Trade Department admitted that so far the number of enterprises that have actually carried out the RMB clearing business is still small.

Companies are going slowly in accepting RMB settlement of cross-border, partly because there is widespread expectation of an appreciation in the RMB, due to which foreign investors are reluctant to make settlement in Yuan.

Settlement in RMB was begun on August 2, on a pilot basis for cross border trade settlement between Hong Kong and five mainland cities; Shanghai, Shenzhen, Guangzhou, Zhuhai and Dongguan.

The banking sector in China and Hong Kong were excited in competing for participation in the first batch of transactions, but transactions have been limited after the first wave of settlement of transactions.

Some export enterprises claim that although settlement in RMB has equal access to tax concessions, a cancellation certificate cannot be issued after verification of exports.

They add by saying that it is not possible to apply for export tax rebates, unless they attach a cancellation certificate after verification of exports, so this particular drawback is holding back settlement of trade in RMB.

Fibre2fashion News Desk - China


Must ReadView All

Pic: Shutterstock

Fashion | On 23rd Aug 2019

32 companies sign fashion pact to present at G7 Summit

Thirty two top global fashion brands and retailers today announced...

Pic: Kohl's Corp

Retail | On 23rd Aug 2019

Kohl's revenue down 3.1% to $4,430 mn in Q2 2019

Kohl's Corporation, a leading omnichannel retailer, has reported net...

Pic: GTS

Apparel/Garments | On 23rd Aug 2019

Himax makes 3D vision-assisted cementing solution for shoe

Himax, a fabless semiconductor solution provider, and GTS have...

Interviews View All

Rahul Bhadani, Looksgud

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Awen Delaval, Samatoa

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Cyril Pereira, Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Alexander Foll,

Alexander Foll

Germany-based H Stoll AG & Co KG manufactures flat knitting machines....

Ashish M Amin,

Ashish M Amin

Premier Looms is a leading provider of cutting-edge machinery and...

Yash Jain & Sanjeev Jain,

Yash Jain & Sanjeev Jain

Divyam Export, launched about 30 years ago, exports to 15 countries,...

Mark Paterson, Technical Absorbents Ltd

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kerem Durdag, Biovation II LLC

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Mohammad Hassan, Biax Fiberfilm

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Ritu Kumar, Label Ritu Kumar

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Pranav Mishra, Huemn

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


August 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search