Macao's banking sector granted better access to RMB business

(Xinhua)
Updated: 2009-12-16 17:57

MACAO: Officials of the People's Bank of China and the Monetary Authority of Macao Special Administrative Region (SAR) Monday signed a memorandum here, which will ease the restrictions on RMB business conducted by Macao banks.

According to the Memorandum of Supplementary Cooperation Relating to Macao RMB Business, the quota on the value of RMB exchange for each individual each time at Macao banks will be increased from 6,000 yuan to 20,000 yuan ($2,929) equivalent, and Macao residents will be allowed to use RMB cheques to pay up to 50,000 yuan ($7,322) per account per diem for consumer spending in neighboring Guangdong Province on the Chinese mainland.

In addition, the scope of designated merchants who are allowed to exchange RMB for Pataca from Macao banks will also be extended.

The document was signed by Zhu Min, deputy governor of the People's Bank of China Head Office and Anselmo Teng, Chairman of the Monetary Authority of Macao, at the Macao SAR Government Headquarters Monday afternoon.

The newly-signed memorandum extends the relevant supervisory cooperative measures established in 2004 by the two sides to cover the "Administrative Rules on Pilot Program of Renminbi Settlement of Cross-Border Trade Transactions" which include arrangements involving Macao, and the three aforementioned measures relating to widened RMB business.

In accordance with the provisions of the "Administrative Rules on Pilot Program of Renminbi Settlement of Cross-Border Trade Transactions", jointly promulgated by the People's Bank of China and relevant ministries of the State Council earlier, banks of Macao are authorized to, via the clearing bank in Macao for RMB business and/or their correspondent banks on the mainland, handle the settlement of cross-border trade transactions denominated in RMB between Macao companies and the pilot enterprises on the mainland.