Bank of China Anhui Expands Cross-Border RMB Settlement Services: New Boost for Anhui Trade

On June 10, 2025, Bank of China Anhui Branch (中国银行安徽省分行, Zhōngguó Yínháng ānhuī shěng fēnháng) announced a major expansion of its 跨境人民币结算 (cross-border RMB settlement, kuàjìng rénmínbì jiésuàn) services, adding 50 new pilot enterprises across Hefei, Wuhu, and Ma’anshan. This brings the total number of corporate clients using the service in Anhui to over 500, with the province’s cross-border RMB settlement volume reaching 21.5 billion RMB in Q1 2025 alone.

The expansion is part of a broader push by the People’s Bank of China to internationalize the renminbi and reduce reliance on the US dollar in trade. For foreign executives operating in Anhui, this means faster transaction times, lower costs, and reduced FX risk. “We have seen a 35% year-on-year increase in RMB settlement volume across our Anhui corporate clients,” said a Bank of China representative at the Hefei launch event. “The new pilot list specifically targets manufacturing, new energy, and high-tech exporters, which are the backbone of Anhui’s economy.”

Expansion Details: 50 New Pilot Enterprises Across Key Cities

The 50 new pilot enterprises were selected from priority sectors under Anhui’s “十四五”规划 (14th Five-Year Plan, shísì wǔ guīhuà). Hefei received 28 spots, reflecting its status as the province’s technology hub—home to companies like NIO and BOE. Wuhu received 12 spots, leveraging its automotive supply chain cluster, while Ma’anshan took 10, targeting its steel and logistics industries. Enterprises in the pilot program can settle trade in RMB without prior approval from SAFE (State Administration of Foreign Exchange), reducing approval times from 5–10 business days to same-day processing for standard transactions.

For foreign invested enterprises (FIEs), the expansion offers a concrete operational advantage: parent companies can now invoice subsidiaries in RMB without FX conversion, eliminating a layer of cost and complexity. “Previously, our US parent required all billing in dollars, forcing us to carry FX hedging costs of around 2–3% per transaction,” notes the CFO of a German-owned machinery firm in Wuhu that was added to the pilot list in April. “Now we settle in RMB with our Chinese suppliers and only convert the net profit back to euros quarterly.” This change alone has saved the company approximately 1.2 million RMB annually in FX fees and hedging premiums.

Why This Matters: Cost and Efficiency Gains for Anhui Businesses

The shift to cross-border RMB settlement delivers three measurable benefits for companies in Anhui. First, transaction speed: RMB-denominated letters of credit now process in 1–2 days versus 5–7 days for USD-denominated ones, according to Bank of China Anhui data. Second, cost reduction: FX conversion fees drop from an average of 1.5% of transaction value to near zero when settling in RMB, saving an estimated 30 million RMB collectively across the province’s pilot enterprises in 2024. Third, reduced regulatory burden: firms no longer need to submit supporting documents for each USD transaction—SAFE approval is required only for amounts exceeding 50 million RMB per transaction.

This service expansion aligns with Anhui’s growing role in China’s trade ecosystem. The province’s total import–export volume reached 1.02 trillion RMB in 2024, a 12% increase from 2023. Cross-border RMB settlement now accounts for approximately 15% of that total, up from 8% in 2021. The central government targets 20% national RMB settlement share by 2027, and Anhui—with its strong manufacturing base—is positioned to exceed that target if current trends hold.

Cross-Border RMB Settlement Growth in Anhui (2023–2025)

Note: 2025 Q1 data annualized for volume estimate. Source: Anhui branch of the People’s Bank of China, press release June 2025.

Anhui’s Role in RMB Internationalization

Anhui is not traditionally seen as a frontrunner in financial innovation—Shanghai and Shenzhen dominate that narrative. However, the province’s manufacturing depth has made it a surprising driver of RMB internationalization. The Bank of China Anhui expansion specifically targets “实体企业” (real economy enterprises, shítǐ qǐyè) in three corridors: the Hefei-Wuhu-Bengbu high-tech belt, the Ma’anshan-Tongling resource processing zone, and the Anqing-Huangshan tourism and light manufacturing region. Each corridor has unique trade patterns: Hefei exports lithium batteries and EVs; Wuhu exports auto parts; Ma’anshan exports steel products. By enabling RMB settlement for these clusters, the provincial government aims to reduce dependency on USD intermediary banks and build a self-sustaining RMB ecosystem.

A key driver is the China-Southeast Asia trade corridor. Anhui’s exports to ASEAN countries grew 18% year-on-year in 2024, reaching 89 billion RMB. ASEAN central banks increasingly hold RMB reserves, and direct yuan-to-baht or yuan-to-ringgit settlement is now possible for Anhui exporters through Bank of China’s regional clearing hubs in Singapore and Kuala Lumpur. “We handle about 40% of our Malaysia-bound invoices in RMB now,” says a trade finance manager at a Wuhu-based EV battery maker. “The counterparty in Kuala Lumpur gets better rates than converting through USD twice. It’s a win-win.”

Impact on Foreign Invested Enterprises (FIEs)

For foreign companies already operating in Anhui as 外商独资企业 (WFOEs, wàishāng dúzī qǐyè) or joint ventures, the expansion removes a frequent pain point: the requirement to maintain separate USD and RMB accounts with different compliance regimes. Under the new pilot program, a single RMB settlement account can handle both domestic and cross-border transactions, as long as the counterparty is on the pilot list. The Bank of China Anhui branch has also introduced a digital dashboard for pilot enterprises that tracks settlement status, counterparty approval, and daily FX rates in one interface.

However, not all FIEs qualify automatically. The pilot is restricted to enterprises with an annual trade volume exceeding 10 million RMB and a clean compliance record. “We had to show three years of error-free SAFE filings to get on the list,” explains a finance director at a US-owned electronics firm in Hefei. “It took about six weeks of back-and-forth documentation. But once approved, the time savings are massive—our cross-border payment cycle dropped from five days to 24 hours.” The table below compares the before-and-after for a typical monthly export cycle for an FIE with 50 million RMB in annual exports.

For foreign managers, the message is clear: if your Anhui subsidiary is not on the pilot list, applying should be a priority. The 50 new slots announced in June are expected to fill quickly, and the next batch—potentially another 60 enterprises—is not expected until Q4 2025. The application process requires a submission to Bank of China Anhui Branch’s corporate banking division, with supporting documents including the company’s business license, import–export registration, and three years of financial statements.

Bank of China also plans to integrate its cross-border RMB settlement portal with the Anhui provincial “单一窗口” (single window, dān yī chuāng kǒu) trade platform by August 2025. This integration will allow companies to submit customs declarations, settlement requests, and tax filings in one session, further reducing administrative overhead. The single window currently handles 90% of Anhui’s export declarations; adding RMB settlement will create a fully digital export pipeline for pilot enterprises.

What This Means for New Market Entrants

Companies that are considering establishing an Anhui presence—whether through a WFOE, a joint venture, or a representative office—should factor cross-border RMB settlement capability into their banking selection criteria. Not all banks in Anhui offer the same level of RMB clearing support. Bank of China is the dominant player, handling approximately 60% of Anhui’s cross-border RMB flows, followed by ICBC and China Merchants Bank. However, foreign banks like HSBC and Standard Chartered also have RMB clearing licenses and may offer better integration with global treasury systems.

A practical recommendation: if your Anhui subsidiary will serve as a regional supply chain hub for Southeast Asia, prioritize Bank of China Anhui Branch for your main operating account, as its ASEAN clearing network is the most extensive. If your trade is primarily with Europe or North America, consider pairing Bank of China for domestic RMB accounts with a foreign bank for EUR or USD accounts, maintaining optionality while reducing FX costs on the RMB leg. The decision ultimately depends on trade volume and counterparty location.

NEXT STEPS

1. Check your eligibility for the RMB settlement pilot. If your Anhui subsidiary exports over 10 million RMB annually, apply for the pilot program via Bank of China Anhui Branch. Read our step-by-step guide: Anhui Cross-Border Trade Guide.
2. Review your banking structure. A single-currency RMB account can reduce costs and complexity, but only if your counterparts accept RMB. Compare options in: Anhui Banking for Foreign Companies.
3. Plan your market entry with RMB settlement in mind. New WFOEs in Hefei, Wuhu, or Ma’anshan can structure their treasury operations for RMB-first from day one. See: Setting up a WFOE in Anhui.

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