BB allows banks to maintain China’s Yuan account to settle cross border transactions

Bundles of 100 yuan notes are pictured at a bank in Shanghai on 8 August 2018AFP

Bangladesh Bank (BB) has allowed banks to maintain accounts in China’s Yuan with their corresponding branches abroad to settle cross border transactions in Chinese currency.

"To bring wider scope, it has been decided that Authorised Dealers (ADs) may maintain accounts in Chinese Yuan Renminbi (CNY) with their correspondents or branches abroad for settlement of cross border transactions executed in this currency," said a BB circular on Thursday.

Previously, the authorised dealers could maintain foreign currency clearing account with the Bangladesh Bank in the Chinese currency.