In the past, the import and export of domestic enterprises could only be settled in US dollars or a third-party currency. During the period from the signing of the contract to the completion of the contract, the change of exchange rate will fluctuate the actual earnings of enterprises. Now the bank has launched RMB settlement business. Since RMB is the local currency of domestic enterprises, the contract pricing is consistent with the main currency of enterprise operation, Before signing the contract, domestic enterprises can effectively understand the transaction cost and income
When developing trade with domestic enterprises, overseas enterprises are willing to use RMB as the settlement currency because the value of RMB remains stable
as to prevent the exchange rate risk.