China to further optimize cross-border yuan policies

China will further optimize cross-border Renminbi (RMB) policies and stabilize foreign trade and investment, according to a circular posted on the website of the People's Bank of China, the country's central bank.

China will promote the facilitation of RMB settlement, simplify the cross-border RMB settlement process, optimize the management of cross-border RMB investment and financing, and facilitate overseas institutions' use of RMB settlement accounts, said the circular.

The circular will come into effect on Feb. 4, 2021.

The bank said it will strengthen instructions to commercial banks in China and continue improving cross-border RMB policies to ensure that cross-border settlement in the currency could serve the country's real economy and facilitate trade and investment.