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CROSS-BORDER LIQUIDITY MANAGEMENT

In order to support the expansion of cross-border RMB transactions and further internationalise the currency, the PBoC has issued a number of policies to relax controls on cross-border RMB cash pooling and other treasury management activities. At the same time, new cross-border RMB payment infrastructure is positioning the RMB for greater global use in the future.

Two-way cash sweeping, particularly in the SFTZ, has been a profound change to the way that corporates can manage their treasury operations and liquidity profile in RMB by allowing greater flexibility in the movement of funds between China and offshore.

Free Trade Accounts are providing significantly improved access to offshore financing and improving potential efficiency of treasury management activities.

CROSS-BORDER INTERBANK PAYMENT SYSTEM (CIPS)

Launched in October 2015, CIPS is a real time gross settlement system to facilitate cross-border RMB payments. CIPS will revolutionise RMB settlements over time by further integrating the RMB into the global financial system in a manner consistent with developed market currencies, reducing reliance on the existing offshore clearing hubs.

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1) By Regulation
a. Dodd-Frank

2) By Business
a. Foreign Exchange Wholesale Disclosure

3) By Country
a. US Disclosures