Do you do business with China? And are your payments still denominated in dollars or euros? Maybe you should consider the Chinese currency, the renminbi, which is taking on an increasingly international dimension. Renminbi transactions offer lots of benefits, both for you and for your Chinese partners.
How does it work?
You can use your BNP Paribas Fortis current account to perform the following transactions in renminbi:
- Payments and collections relating to trade in goods and services;
- Cash flows with your subsidiaries;
- Finance and investments;
- Collection and payment of dividends;
- Cash-pooling in Belgium;
- Foreign exchange operations
- Documentary credits and collections (liens).
- Reduced costs as there is no currency translation for your Chinese partners.
- Natural currency hedging to cover your import-export flows.
- Improved price transparency, which is a benefit during negotiations.
- Wide variety of transactions: BNP Paribas Fortis, historically anchored and with a strong presence in Asia, has an extensive range of renminbi transactions from which you can benefit.
Good to know
The following elements need to be included in your payment orders:
- The CNAPS code of the beneficiary bank. This is a 12-digit code, preceded by the country code CN;
- Number of the beneficiary’s RMB account;
- Beneficiary’s name and address, with neither abbreviation nor acronym;
- Payment amount;
- Nature of payment;
- To avoid possible delays, costs or refusals, the following official codes should be included when communicating the transaction
- /PAYT/02112 for payments associated with trade in goods: purchase of consumer or capital goods, merchandise, raw materials, finished and semi-finished products, etc.
- /PAYT/02114 for payments associated with trade in services: transport, travel, communication, construction, installation, IT, insurance, royalties, legal advice, publicity, copyright, etc.
- /PAYT/02116 for payments associated with capital: acquisitions, finance, loans, capital increases or reductions, FDI, etc. (these operations are subject to legal restrictions and may necessitate prior authorisation on the part of the competent Chinese authorities).
- /PAYT/02125 for all other payments: taxes, donations, etc.
- Checks are carried out frequently in China at the beneficiary to verify the nature of the received payment. It is up to the beneficiary in this event to justify the nature and the amount.
- The renminbi is no longer open for payments to private individuals in China.
- Our offering is regularly adjusted to take account of legal developments.