OREANDA-NEWS. September 9, 2011. Foreign trade conducted by some Anhui-based companies will be allowed to settle payments in yuan, in a bid to avert currency exchange risks caused by weakening dollar, says Anhui Provincial Department of Commerce (APDC).

The decision comes after a notice on Expanding RMB Settlement in Foreign Trade, which was issued by Central Government. The first batch of 600-plus enterprises from Anhui Province were approved officially to pilot RMB settlement in foreign trade.

Meanwhile, a working panel consisting of units such as Branch Bank of People's Bank in Hefei, Financial Department, Tax Bureau and Hefei Customs was set up to deal with the issues, which carries out a special training for all enterprises regarded.

The move is considered to benefit foreign trade in four aspects, firstly, it will reduce risks triggered by exchange rate fluctuations facing companies; secondly, it will save costs occurred during currency exchanges; thirdly, it will speed up capital flowing rate for cmpanies, by cutting loads of procedures; lastly, tax refunds are still available for these pilot companies.

It's expected that RMB settlement will be a major settlement method in future trade, with strengthening yuan.