Recently, Bank of China successfully handled the first foreign debt which was withdrew in different currency for Yunnan Yingfu Trading Co., LTD. In China (Yunnan) Pilot Free Trade Zone, with the amount of 1.22 million yuan. The successful handling of this business not only meets the cross-border financing needs of enterprises in the area, but also helps enterprises control financing costs, reasonably avoid exchange rate risks and improve their capital utilization efficiency.

In order to support the construction and development of the Free Trade Zone (FTZ), the Yunnan Branch of the State Administration of Foreign Exchange issued relevant policies to promote trade and investment facilitation. The policies clearly state, “relax the requirement that enterprises in the FTZ must use the same currency for signing, withdrawing and repaying in cross-border financing.” According to the needs of the enterprises, combined with the foreign exchange innovation policy, and with the support of the Yunnan Branch of the State Administration of Foreign Exchange, this cross-border financing business was finally withdrawn in RMB while it was signed in USD before.

The Commerce and Financial Service Bureau of Kunming Area has cooperated with the Yunnan Branch of the State Administration of Foreign Exchange for many times, and jointly held the promotion meeting of foreign exchange facilitation and innovation policies to encourage and guide financial institutions and enterprises to make full use of the advantages of the foreign exchange policy.

For the next step, the Kunming Area will closely follow the overall requirements of the construction of the FTZ, further deepen the opening and innovation in the financial field, promote the implementation of innovation policies, and provide more convenient services for enterprises in the Area.

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(Editors: Christine, Amy)