Bank of China has issued an advance payment guarantee in renminbi to support a Chinese construction company undertaking New South Wales' first high-rise modular building project in Australia, marking another step in the currency's growing international use.

The RMB guarantee was arranged through close coordination between BOC's Sydney and Shenzhen branches. The process, from confirming key terms to issuance, was completed within a week, ensuring timely financial backing for the 12,000-square-meter student housing project in Sydney.

As Australia's RMB clearing bank, BOC has built a comprehensive local clearing network, processing more than 100 trillion yuan ($14.04 trillion) in transactions for Australian financial institutions. 

By offering cross-border services such as RMB letters of guarantee, the bank helps both Chinese companies operating in Australia and local firms reduce transaction costs and manage currency risks.

The bank said it will continue to expand its portfolio of RMB-based trade finance products to support business ties between China and Australia.

Source: Southern Weekly