RMB clearing bank to facilitate trade, investment between Laos and China
A renminbi (RMB) clearing bank has opened in Laos to make it easier for businesses and financial institutions in Laos and China to carry out cross-border transactions using RMB and further facilitate bilateral trade and investment.
It will also create a fast, safe and economical cross-border settlement channel between the two countries.
The opening ceremony of the bank took place in Vientiane on Monday, attended by Prime Minister Sonexay Siphandone; the Governor of the Bank of the Lao PDR, Bounleua Sinxayvoravong; Charge d’Affaires of the Chinese Embassy in Laos, Wang Chang; Senior Executive Vice President of the Industrial and Commercial Bank of China (ICBC) Zhang Weiwu; Director of the Macro Prudential Policy Bureau of the People’s Bank of China, Li Bin; executives from commercial banks in Laos; business leaders; and Lao and Chinese government officials.
The establishment of the RMB clearing bank in Laos is an important landmark in financial cooperation between Laos and China and will be an additional facility for traders from the two countries to arrange transactions in the local currency, Wang said.
It will help improve capital circulation, make interactions between bank personnel more efficient, and encourage in-depth financial cooperation between the financial institutions of the two countries, especially in raising funds, issuing bonds, and borrowing and conducting transactions in the money market and other areas, to achieve mutual benefits, he said.
ICBC Bank will use its outstanding potential to provide high-quality financial services, contribute to the work of the Belt and Road Initiative and cooperation in the framework of the Laos-China Economic Corridor, promote trade and investment cooperation between Laos and China to another important level, as well as continue to contribute to the construction of a shared future community between the two countries.
The Vientiane branch of the ICBC Bank was established in 2011. It was the first Chinese commercial bank to set up operations in Laos and has become an important bank in facilitating trade between Laos and China.
On September 30, 2022, the People’s Bank of China appointed the ICBC Bank Vientiane branch as Laos’ yuan settlement bank.
At the opening ceremony, representatives of seven commercial banks, namely Banque pour le Commerce Exterieur Lao (BCEL), the Lao Development Bank, the Lao-Viet Bank, Phongsavanh Bank, Lao-China Bank and BIC Bank, signed settlement agreements with the ICBC Bank Vientiane branch, becoming the first member banks of the Yuan Settlement Bank in Laos.
As the world’s number one bank in yuan transactions, ICBC Bank has created the most advanced payment system in the financial sector and is the first bank to provide 24-hour yuan settlement services.
ICBC Bank has been assigned the role of an RMB settlement bank in 11 countries, with services covering settlement, money transfers, loans, guarantees, foreign currency trading and derivatives trading.
International yuan transactions and yuan transactions outside of China carried out by the ICBC Bank Group are valued at more than 100,000 billion yuan annually.
The Vientiane Times
Asia News Network
