After launching Export Quanyida a few months ago, Bank of China develops a new product for trade financing---Import Huilida to meet the new market demands of foreign exchange and foreign trade.
With the deepening of the reform of RMB foreign exchange rate regime in China, how to reduce the foreign exchange rate risk in import trade and how to control financial costs efficiently have become major concerns for import enterprises. To satisfy their new demands, Bank of China came up with a product package of import financing, RMB deposits and forward foreign exchange sale named “Import Huilida”.
By combining the RMB and foreign currency operations and trade financing, the Import Huilida provides import enterprises with various financial instruments to reduce foreign exchange rate risks and to minimize the costs of buying foreign exchange with no need to take up credit line. For example, if a customer needs to pay USD when the spot exchange rate of USD is relatively high but the forward exchange rate is relatively low, the customer can use the forward exchange margin to reduce the cost of buying foreign exchanges through the Import Huilida. The customer can make a profit as long as the sum of the saved cost and the interest income of RMB deposits is larger than the interests paid for the import financing.
In the near future, Bank of China shall continue to make full use of its advantages in human resources, technology, network, etc., and develop more trade financing products and services to meet the market demands.
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