China Launches Pilot Program of Multicurrency Settlement Account
On 26 July 2021, the pilot program of multicurrency settlement account has been launched simultaneously in four mainland cities of China, i.e., Guangzhou, Shenzhen, Fuzhou and Hangzhou in compliance with the plans and arrangements of the People’s Bank of China and the State Administration of Foreign Exchange of the PRC.
Before the launch of the pilot program, Chinese enterprises with international settlement business only can open single currency settlement accounts. They have to open multiple foreign currency settlement accounts in USD or Euro respectively since each currency will need a single account. The account opening cost and account management cost are quite high. Now enterprises in the pilot cities can open a multicurrency settlement account to manage domestic and a variety of foreign currency funds simultaneously based on their own needs. They may apply for multicurrency settlement service when applying to open the multicurrency settlement account or apply for corresponding currency settlement service later. Enterprises that have opened multiple single currency settlement accounts may integrate the previously opened accounts in single currency by signing an agreement with the bank. The use of multicurrency settlement accounts will provide conveniences for enterprises with a large number of international settlement business and reduce their costs of account opening and account management.
In addition to enterprises, individuals in the pilot cities also can open a class I bank settlement account integrating domestic and foreign currencies to use and manage multicurrency funds.
The following banks in the pilot cities can open multicurrency settlement accounts. Please check with the relevant banks for the specific pilot outlets.
- Guangzhou: Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China, 87 outlets in total.
- Shenzhen: Industrial and Commercial Bank of China, Bank of China, China Merchants Bank, 57 outlets in total.
- Hangzhou: Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China, China Construction Bank, 51 outlets in total.
- Fuzhou: Industrial and Commercial Bank of China, China Construction Bank, China Merchants Bank, 40 outlets in total.
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