Philippines and China agree commercialization in yuan
Both nations seek to facilitate transactions, as well as speed up and reduce the cost of exchange
A total of 13 banks in the Philippines, along with the Bank of China, managed to create a trading company that operates with Chinese yuan instead of the dollar.
This measure seeks to streamline and cheapen the negotiations, as well as “reduce the obstacles of direct trade, investment and tourism,” according to the Secretary of Finance, Carlos Dominguez.
Thanks to this agreement, companies that are involved in trade between these two countries can save up to 3% in the value of the total transaction.
“We hope this will help financial trade between the Philippines and China to prosper,” said Nestor Tan, president of the Philippine Banking Association.
These announcements come after a visit made by the Chinese State Councilor and Foreign Minister, Wang Yi to the Philippines, where he met with his counterpart Teddy Locsin.
In 2017, the Philippines exported a total of $ 761 million to China, while its import rate was $ 1920 million, according to figures presented by the National Statistics Authority.
Source: La Tercera
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