An ideal choice for Thai enterprises using RMB for international business
Diversifies exchange rate risk
Diversify your exchange rate risk with a service that is ideal for large enterprises with operating cash flows in a single currency
Opportunity to expand client base
Expand your client base, especially among small enterprises
Better Transparency
Enjoy greater transparency in pricing as there is no need to quote prices in a third currency
Our Expertise
We provide comprehensive RMB Cross Border Trade Settlement Services for companies which do business with counterparties in China or with partners in Chinese business networks. Our RMB services cover International Trade, Trade Finance for Export and Import, International Remittance, Currency Exchange Forward Contract and Foreign Currency Deposit Accounts.
Bangkok Bank’s extensive experience in China and Hong Kong, combined with our depth of knowledge in RMB Cross Border Trade Settlement mean we can support you to efficiently manage your international business using RMB.
Our RMB International Trade Service includes:
RMB Trade Services
RMB Trade Finance Services
RMB Outward and Inward Remittance Services
RMB Currency Exchange Services
RMB Forward Contract
RMB Foreign Currency Deposit Account Services
Other Useful Information
How to conduct international business in RMB currency
Before making an Outward Remittance to China using RMB currency, Thai enterprises should check with business partners in China to ensure that they can receive the cross border payment in RMB as they will need to meet conditions set by the Chinese authorities as follows:
Chinese enterprises which are eligible to receive cross border payments for goods and services in RMB currency must fulfill the following conditions
Cross border receipt and payment for goods and services in RMB currency is still at an initial phase and the liquidity of RMB currency in the money market is still limited, so Thai enterprises should exercise caution when making such transactions.
To hedge against exchange rate risk from RMB currency:
Entrepreneurs in Thailand must provide documents stating the receivable or payable underlying transactions in RMB currency when undertaking a contract.
The contract amount and delivery date must comply with the underlying obligations.
After the Forward Contract for hedging RMB currency risk is established, the client has the right to amend or unwind the forward contract if there is any change to the underlying payment obligation. This excludes changes related to currency speculation.
If you receive payment for goods or services more than 360 days after the exportation date or after the transaction date, you must fill in the relevant form and provide related documents (if any) to request a relaxation of the regulations from The Bank of Thailand.
Chinese enterprises which are eligible to receive cross border payments for goods and services in RMB currency must fulfill the following conditions
- Qualify to operate an import/export business, have obtained a license from the Administrative Bureau for Industry & Commerce, and reported to the Foreign Economic and Trade Committee
- Must be registered in the RMB Cross-border Receipt and Payment Information Management System (RCPMIS) of commercial banks in China.
Cross border receipt and payment for goods and services in RMB currency is still at an initial phase and the liquidity of RMB currency in the money market is still limited, so Thai enterprises should exercise caution when making such transactions.
To hedge against exchange rate risk from RMB currency:
Entrepreneurs in Thailand must provide documents stating the receivable or payable underlying transactions in RMB currency when undertaking a contract.
The contract amount and delivery date must comply with the underlying obligations.
After the Forward Contract for hedging RMB currency risk is established, the client has the right to amend or unwind the forward contract if there is any change to the underlying payment obligation. This excludes changes related to currency speculation.
If you receive payment for goods or services more than 360 days after the exportation date or after the transaction date, you must fill in the relevant form and provide related documents (if any) to request a relaxation of the regulations from The Bank of Thailand.
How to Apply
For more information, call us at Corporate Service Center (66) 0 2031 7888 on Monday - Friday (excepting Bank holidays) from 8:00a.m.–8:30p.m.
