介绍:
Zhao Yang: Talking about this interbank payment system this CIPS people say its an important in the yuan’s internationalization so Einar can you explain specifically how it will enhance efficiency of the yuan’s cross border settlement and promote cross border use. Because we know that previously cross border yaunn clearing had to be done by the off shore yuan clearing banks done in the Hong Kong or London. But how about from now on.
Einar Tangen: From now on what it does is it decreased transactional risk which in turn decreased the cost of doing the transaction itself. So it’s a very direct market operation where it’s completely transparent and its time sensitive so it’s happening right away. Whereas if you were going through their previous process it would have to book the value of what they were dong in advance and cover it. So it’s a completely different kind of thing to kind of normalize the world in where foreign exchange is and it will be a massive boost to China because china does so much international trade both in terms of incoming and resources but also resources and outgoing goods.
Zhao Yang: Well Winston, what does it mean for individual companies and investors?
Winston Wong: I don’t think it will directly impact the individual and companies with the immediate and sort of visible effect. I agree with Einar it actually costs out the layers of transaction and facilitates the transfer and payment of rmb much easier, so the cost benefit will be more on a systematic level and will be spread out to hopefully a lot of players but not in a visible way in my view. At least not in the near future.
Einar Tangen: When this is expanded, because of the amount of small and medium sized enterprises both within China and around the world ,who will be engaging more directly, there will start to be more direct benefits. If I’m a small company in Shenzen, or someplace and I want to do a transaction overseas, right now it’s very difficult and you have to go through a lot of steps its costly and time consuming and basically it’s a barrier to transactions because the other side has to do it too. This will allow it to be transfer to be very very quick; just a transfer of payment of money coming in and out. So I think down the line it will have a very very big impact.
