BOC test-runs renminbi settlement measures

The Bank of China has carried out the first cross-border trade settlement denominated in renminbi since the promulgation of new measures regulating the pilot programme.

The pilot programme was approved by the State Council on June 29 2009. Under its terms, eligible companies in Shanghai, Shenzhen, Guangzhou, Dongguan and Zhuhai will be able to settle their transactions with Hong Kong and Macau without needing to resort to use of the Hong Kong dollar or Macanese pataca. The supporting Measures for the Administration of Pilot Projects for Cross-
border Trade Settlement in Renminbi (跨境贸易人民币结算试点管理办法) were published on the website of the People's Bank of China (PBOC) on July 1.