RMB clearing bank opens in Laos

This photo taken on Oct. 23, 2023 shows the opening ceremony of the RMB clearing bank in Vientiane, Laos. A renminbi (RMB) clearing bank opened in Laos, which will create a fast, safe and economical cross-border settlement channel between Laos and China. (Photo by Kaikeo Saiyasane/Xinhua)

VIENTIANE, Oct. 25 (Xinhua) -- A renminbi (RMB) clearing bank opened in Laos, which will create a fast, safe and economical cross-border settlement channel between Laos and China.

The opening ceremony of the bank, held on Monday, was attended by Lao Prime Minister Sonexay Siphandone, Governor of Laos' central bank Bounleua Sinxayvoravong, Charge d'Affaires of the Chinese embassy in Laos Wang Chang, and Vice President of the Industrial and Commercial Bank of China (ICBC) Zhang Weiwu.

Wang said the bank is aimed at helping enterprises and financial institutions carry out Chinese currency transactions between China and Laos, reducing the cost of the exchange rate, facilitating trade investment between the two countries, and maintaining the financial stability in Laos and strengthening the economic-commercial relations between the two neighbors.

Sinxayvoravong said the launch of RMB clearing is very important for the socio-economic development of Laos, as it supports the cooperation policy of the two sides to promote trade and investment for continuous and strong growth.

The ICBC Vientiane Branch has been working to apply for the establishment of RMB clearing in Laos since 2019, and the People's Bank of China, China's central bank, signed a memorandum of cooperation with the Lao central bank on the establishment of RMB clearing arrangements in Laos on Sept. 20, 2022.