As the global economic landscape continues to change, RMB internationalization has become an important part of China’s financial opening up.
Recently, Jinshang Bank successfully completed a landmark business – handling a cross-border RMB payment business of 217 million yuan for Taiyuan Airlines Group, and the funds were directly transferred to the UK seller’s designated settlement bank.
This is not only the first cross-border RMB payment for goods in Shanxi Province, but also the largest cross-border RMB settlement business of Jinshang Bank to date, successfully breaking through industry practices.
Proactive services lead innovation, and RMB settlement breaks industry barriers.
After learning that Taiyuan Aviation Group was interested in negotiating with an aircraft leasing (UK) Co., Ltd., the comprehensive reform branch of Jinshang Bank quickly listed this business as a key task for breakthroughs in cross-border RMB business.
The bank team actively intervened in the early stage of negotiations and adopted a service strategy of forward marketing and full follow-up.
From the signing of the letter of intent to the purchase and sale agreement, we continue to promote the advantages of RMB settlement to our customers.
This proactive service attitude ultimately led to the use of RMB quotation settlement for the transaction, successfully breaking the long-term industry practice of settling in U.S. dollars in the traditional aircraft trade field.
Jinshang Bank has provided Taiyuan Aviation Group with a full-process, one-stop cross-border financial service solution through innovative financial service models to accurately meet the import business needs of enterprises.
From business consultation, plan design to final fund transfer, the bank team demonstrated professional and efficient service capabilities and effectively supported customers in adopting the new business model of “bonded procurement + leasing trade”.
This service approach that deeply involves the entire process of customer business not only helps enterprises avoid the risk of US dollar exchange rate fluctuations, but also significantly reduces transaction costs and improves the efficiency of capital use. It fully reflects the determination of Jinshang Bank to implement the national strategy of RMB internationalization and the requirements of the People’s Bank of China for cross-border RMB settlement work.
It has far-reaching strategic significance and injects new momentum into regional economic development.
The successful handling of this cross-border RMB settlement business is of great significance to promoting the process of RMB internationalization in Shanxi Province and even the country.
As the first cross-border RMB payment for goods in Shanxi Province, it not only marks that Jinshang Bank has achieved important results in promoting RMB cross-border settlement, but also provides new ideas and possibilities for enterprises in Shanxi Province to carry out international trade.
By directly settling international trade in RMB, companies can effectively avoid exchange rate risks, simplify settlement processes, and reduce transaction costs.
The promotion of this model will help enhance the influence and acceptance of RMB in the international market, and expand new scenarios for the application of RMB in international trade.
Jinshang Bank stated that it will take this business as an opportunity to increase business promotion and product promotion, continuously improve the quality and efficiency of cross-border financial services, continue to optimize financial products and services, and meet the diversified cross-border financial needs of enterprises.
With the continuous advancement of RMB internationalization, it is expected that more companies will choose to use RMB for cross-border trade settlement.
This successful practice of Jinshang Bank not only deepens the cooperation between banks and enterprises, but also injects new momentum into regional economic development.
By actively responding to the country’s strategic plan to promote the internationalization of the RMB, Jinshang Bank is making greater contributions to serving regional economic development and promoting the internationalization of the RMB.
In the future, with the development of more similar businesses, the status of RMB in international trade will be further enhanced, providing more convenient financial support for Chinese companies to “go global.”
