A meeting on the expansion of the yuan's cross-border trade settlement supported by the Shanghai government was held in Shanghai Thursday and the city committed to encourage banks and firms to join in the program's support.
At the meeting, more than 10 departments in Shanghai as well as banks and firms discussed the expansion of the yuan-settlement trial to most of the city in projects in financing, direct investment and other trade activities.
Of the terms discussed, the government also stressed the yuan-settlement in the international bidding business and in effectuating purchases of imported goods.
In addition, the Shanghai branches of eight banks, including Industrial and Commercial Bank of China Ltd (ICBC), Agricultural Bank of China (ABC), Bank of China (BOC) and Standard Chartered Bank, signed memorandum of understanding (MOU) on yuan trade settlement with eight companies at the meeting.
Zheng Yang, official from the central bank's Shanghai office, said that by August 16, more than 26.6 billion yuan ($3.9 billion) had been traded in yuan in the city from which 20 billion yuan ($2.95 billion) came from imports, 1.5 billion ($0.22 billion) from exports, 1.4 billion ($0.21 billion) from service trade and 3.7 billion ($0.55 billion) from capital projects.
He said that in the future, Shanghai will simplify the procedure for overseas companies and organizations to open yuan accounts in the city.