“Chinese Yuan Payment”
The Chinese yuan (CNY), is also commonly referred to as renminbi (RMB) and is the currency of mainland China, excluding Hong Kong and Macau.
On 30 November, 2015, the IMF announced that the yuan would become a reserve currency, joining the U.S. dollar, euro, pound sterling, Japanese yen, Swiss franc, Canadian dollar, Canadian dollar and Australian dollar. The yuan’s entry into the IMF list takes effect on October 1, 2016.
The yuan also becomes one of five currencies within the IMF’s Special Drawing Right (SDR) currency basket on the same day with a weighting of 10.92%, higher than the Japanese yen or British pound.
Payment to suppliers in China in yuan may be preferred over payments in the more common international trade settlement currency, the U.S. dollar, as it generally cuts down on processing time and costs associated with foreign exchange. Cross-border payments to China are now subject to CIPS (China International Payments System).