Yuan settlement will dip into non-tradable goods in Shanghai

Report shows, as cross-border yuan business increases much better than last year, <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Shanghai exporters are desirable for yuan settlement in the field of non-tradable goods which accumulated accordingly. An state-owned banking official told the reporter, “from the beginning of this year, it sees a surge of cross-border deals with almost billions of amount monthly, though worthless to the volume in foreign currencies”; “Shanghai government will provide an “ease-up” in support of yuan settlement, when waiting the approval of its 963 enterprises listed for the trial running”.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

As reported, shanghai has provided those enterprises the “standby  status” to trial on yuan settlement deals, in case it appears urgent business demand which conformed the  rules required thereof. But, most of the businesses are confined to import trading as the enterprises have not approved yet for export tax rebate in cross-border settlement.

Again from the said official, “at present, more and more firms have demand for yuan business other than commodities trade, mainly involving trade in service, transfer under current account and overseas investment. They are watching closely for the expansion of yuan business, and knowing the key point is to be verified of the authenticity from the bankers.”

Other report from a commercial bank says it has seen “speed-up” of yuan’s settlement at shanghai this year with accumulated transactions.