Thursday, Hong Kong's Chief Executive, Donald Tsang welcomed the State Council's decision to introduce a pilot program for using renminbi for cross-border trade settlements. He said Hong Kong completed the necessary technical preparations for becoming the first place outside the Mainland to benefit from RMB-denominated Trade Settlements scheme.
Enterprises in Hong Kong will be able to settle their trade in RMB through the banks with the mainland companies and the scheme will cover import, exports and re-exports.
The scheme helps enterprises to reduce the risks arising from fluctuations in exchange rate and bring new business for the banking sector in Hong Kong. Further, the new scheme will raise the diversity of RMB assets in the banking system in Hong Kong.
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