Home currency settlement business is one of the best channels in facilitating Sino-Russian trade

Home currency settlement business has advantage in salient characteristics of saving time, money and procedures, as well as avoiding exchange rate risks. First of all, reducing floating time of funds. By way of establishing RMB and Ruble accounts by banks of both countries, the “point-to-point” straight-through liquidation enables the funds to reach the receiving account within the same day and thus reduce the floating time of funds as well as improves the service efficiency of funds. Secondly, saving capital costs. Transit charges can be saved as remittance through clearing bank of a third country has been omitted; in addition, unnecessary to purchase currency of a third-party, the sender is able to use the national currency directly. Costs of purchasing of foreign currencies are reduced as a result; thirdly, save procedures of funds clearing. Remittance is free from restriction of bank account position. Customers are allowed to remit at any working hours; business operations have been simplified and thus become more efficient; fourthly, effectively avoiding exchange rate risks. Customers are able to fix the exchange rate between ruble and RMB and free of restrictions of any other currencies.