ABSTRACT
In 1997, the State Administration of Exchange Control issued the “Interim Measures of Administration of Border Trade Exchange,” allowing settlement in RMB but asking foreign trade institutions to open specified accounts for RMB settlement. It also stipulated that account funding could only be used for payment of border trade. It was the beginning of the process of using the RMB for settlement of cross-border trade. Currently, settlement in RMB is limited to border trade companies in specified areas and the scale is rather small. However, the aim is to build a base for the usage of the RMB in order to increase circulation in neighboring countries and to extend its influence.
