CNY cross-border foreign exchange settlement and sales refers to the dealing of a foreign currency against CNY, under the agreements of two parties with factors including currency type, amount, exchange rate and value date. Cross-border exchange settlement, which in essence is the process of converting CCB Sydney’s customer’s foreign currency to CNY, in the agreement with the rate acknowledged by both parties (off-shore), and CCB Sydney, accordingly remits the CNY to the nominated CNY account, at the same time the customer will deposit the foreign currency into CCB Sydney’s foreign Nostro account. A Cross-border exchange purchase, ceteris paribus, is to convert CNY to the foreign currency at the agreed rate and CCB Sydney will remit the foreign currency to the beneficiary’s account, whilst the customer deposits CNY into CCB Sydney’s CNY account. This particular business is mainly open to Australian on and off shore customers and CCB domestic branches.

Since the official launch of CNY cross-border foreign exchange settlement and sales in May 2012, the development of this service has been growing rapidly due to the internationalization of CNY and the fluctuation of exchange rates.  Presently CCB Sydney is trading AUD, USD, HKD, EUR, GBP, and NZD against CNY for cross-border exchange services. The shortest time frame for settlement of such service is T+0 and the longest term is a 1 year forward value date. As for our service operations, the overall workflow is efficient and effective, we offer favourable rates, deals are settled on time and good relationships are maintained with all clients.  From April 2013, AUD and CNY can be directly converted, thus opening a new pathway to AUD/CNY settlement services. 

Acknowledgement:

Chinese version written by Jessie Yu

Chinese version reviewed by Helen Peng

English version translated by June Shi