Leveraging Offshore RMB Transaction

Payment / Receipt related to current transactions with Mainland China

The use of offshore RMB makes it possible to pay/receive RMB for current transactions with Mainland China.

In case of remittance to Mainland China

In case of the remittance to Mainland China

Advantages of offshore RMB transaction

  • ・Forex risk in the subsidiary can be centralized to the head office by adopting RMB settlement.
  • ・In case of buying products from the external company in Mainland China, the transparency in the price-determining-process, resulting from the usage of RMB, may lead to smooth negotiations for price reduction.

Notes

  • ・In accordance with the change of the settlement currency from FCC to RMB, the head office bears the RMB Forex risk.

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