Corporate Clients in China can make CNY payments by converting funds firstly to CNH* and then to Your CNH Account at a 1:1 exchange rate.
*subject to the sending bank’s policy in China.
What is the difference between CNY and CNH?
Renminbi is the name of the currency of the People’s Republic of China (RMB) while the currency unit is the Yuan. There are two types of Renminbi, each one covering a different trading market – CNY is used in the domestic economy while CNH is used for international trade. These two markets differ according to regulations and each market has its own exchange rate. Read more here.
How are payments received?
China’s central banking system implemented its own international payment system in 2015 known as CIPS (Cross-Border Inter-Bank Payments System). CIPS provides clearing and settlement services for cross-border renminbi (RMB/Yuan) transactions.
CIPS became mandatory for cross border CNY on the 1st January, 2021. Our banking partner is a member of CIPS which means that the sender’s CNY is converted to CNH at a 1:1 exchange rate within China* and send the CNH to your HUBFX account, meaning that you never need to make a second FX conversion in your HUBFX.
*subject to the sending bank’s policy in China.
The payment process is outlined below:
1.We collect funds in CNH coming from China.
2.The funds are funded into our CNH account.
3.Our transaction monitoring team would sometimes ask you questions about the transaction. Once it’s approved or whitelisted, you can use your CNH for paying CNH payment or convert CNH to any other currencies.
Please note that the sender of a CNY payment to China must be a company incorporated in mainland China. An individual CNY senders are usually not permitted by the local bank.
Is a Payment Purpose code required?
A valid payment purpose code is required for SWIFT CNY payments into China. A payment purpose code is not required for CNY -> CNH out of China or any other destination country.
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