CT ‘s abridged guide to China’s new guidelines on nationwide cross-border renminbi (RMB) cash pools and centralised payment and collections under current account.
CT has translated and provided an explanation China’s recent comprehensive Q&A session aimed at clarifying foreign currency cash pooling rules for multinationals.
China’s PBOC will allow cross-border renminbi pooling for multinational corporates, though the need for distinctions between onshore and offshore renminbi for corporate treasurers remains.
China will likely free up deposit rates within two years, hopefully helping end the need for corporates to park cash with dodgy wealth management products, economists believe.