Companies trading with suppliers, customers, or subsidiaries in China may need to settle invoices and payments in China’s local currency. Using renminbi (RMB) for cross-border business transactions can align the settlement currency with the commercial agreement, while giving finance teams a basis for managing payment instructions, foreign exchange, and cash flows.
A practical RMB payment process starts with confirming settlement terms, arranging suitable account or payment capabilities, checking beneficiary details, deciding how the currency will be funded, and reconciling the completed transaction. DBS supports corporate RMB transactions through account, payment, foreign exchange, and liquidity solutions, giving businesses a set of services for managing China-related flows.
Quick Steps: How to Use Renminbi for Cross-Border Transactions
For a cross-border RMB transaction, align the commercial terms, account, funding, and settlement details before funds move. A consistent process helps finance teams verify each stage.
- Confirm that both parties will settle in RMB.
- Arrange an account or payment facility that supports RMB.
- Check the invoice, beneficiary, payment-purpose, and approval details.
- Decide how the payment will be funded and manage FX exposure.
- Send or receive the payment and track settlement.
- Reconcile the transaction and manage any remaining RMB balance.
What You’ll Need Before Making a Renminbi Transaction
Before initiating the payment, confirm that the business has the banking access, transaction information, and internal controls required for the transfer. These checks align the payment instruction with the underlying commercial transaction.
| Check | What to confirm |
| Banking access | An account or payment facility that supports RMB transactions |
| Commercial terms | Invoice currency, amount, payment date, and responsibility for fees |
| Beneficiary details | Account name, bank information, payment reference, and purpose |
| Funding | Existing RMB balance or planned currency conversion |
| Controls | Required approvals, supporting records, cut-off times, and applicable charges |
DBS users can review its foreign currency wallet management and payment capabilities before creating the transaction.
Step-by-Step Process for Cross-Border Renminbi Payments
Step 1: Agree to Settle the Transaction in Renminbi
Confirm the invoice currency, amount, payment date, payment terms, and allocation of bank charges with the counterparty. Aligning these details early gives both parties a consistent basis for payment and reconciliation.
Cross-border renminbi settlement already represents substantial trade activity. The People’s Bank of China reported, “In 2024, the cross-border RMB settlement of trade in goods totaled RMB 12.4 trillion yuan,” with settlement rising 15.9% year on year.
Step 2: Arrange an RMB Account or Payment Facility
Check whether the business can hold, send, and receive RMB through its existing banking setup, or whether a suitable RMB facility is required. Confirm the markets, transaction types, and currencies supported before the first transfer.
DBS provides corporate RMB account, remittance, foreign exchange, and liquidity capabilities for businesses managing China-related flows. Review the available functions against the expected transaction pattern and internal treasury requirements.
Step 3: Confirm the Invoice and Payment Details
Match the beneficiary name, account information, payment amount, currency, reference, and purpose with the commercial records. Where a bank requests payment-purpose information or additional fields, complete them using the details that accurately describe the transaction.
Authorised staff should then review the payment under the company’s approval process. This creates a clear control point before submission.
Step 4: Fund the Payment and Manage FX Exposure
Decide whether to use an existing RMB balance or convert another operating currency. Finance teams can compare exchange rates, transaction costs, settlement timing, and existing FX policies when selecting the funding approach.
RMB also has meaningful activity in global currency markets. The Bank for International Settlements reported, “CNY was by far the most traded EME currency, accounting for 8.8% of global turnover in April 2025.” A 2026 central-bank analysis also estimated that RMB-denominated Chinese trade had risen from below 20% in 2021 to around 35%.
Step 5: Send or Receive the RMB Payment and Track Settlement
Submit the payment using the agreed beneficiary and funding information, then complete the required approvals. Check the currency, amount, fees, reference, and beneficiary details before final submission.
For outgoing or incoming transfers, use available payment-status information to confirm progress and receipt. Keeping the payment reference consistent supports faster follow-up and reconciliation. DBS users can also refer to its local and overseas corporate payment process when preparing a transfer.
Step 6: Reconcile and Manage the Remaining RMB Balance
Match the settled transaction to the invoice, bank record, and accounting entry, including charges and FX differences. For recurring RMB flows, assess whether retained balances can support future obligations or wider liquidity needs.
Businesses with balances across entities or markets can also evaluate cross-border liquidity management, including cash concentration, pooling, or other arrangements where these structures suit their operating model and applicable requirements.
Common Issues When Making Cross-Border RMB Payments
Common payment issues are easiest to resolve by checking the transaction data first, then reviewing bank-specific requirements and processing status. Focus on the field or approval stage linked to the delay.
- Beneficiary details differ: Compare the account name, bank information, and payment reference with the latest commercial records.
- Purpose information requires confirmation: Verify the transaction category and supporting details before resubmission.
- FX amount differs from expectations: Review the debit currency, settlement currency, rate, and applicable charges.
- Settlement is taking longer: Check cut-off times, holidays, approval status, intermediary processing, and payment tracking before creating another transfer.
Frequently Asked Questions
Is renminbi the same as yuan?
Yes. Renminbi (RMB) is the official name of China’s currency, while yuan is its basic unit of account used to express prices and monetary amounts.
What is the difference between CNY and CNH?
CNY commonly refers to renminbi traded and settled onshore in mainland China, while CNH refers to offshore renminbi markets. Both represent RMB, although market conditions and exchange rates can differ.
Can a Singapore business pay a supplier in China in renminbi?
Yes. A Singapore business can make RMB payments to eligible counterparties in China through banking arrangements that support the transaction and applicable payment requirements.
Do businesses need an RMB account to make RMB payments?
No. Some banking arrangements allow businesses to fund an RMB payment by converting another currency, while an RMB account can support regular RMB receipts, balances, payments, and treasury management.
Can receiving and paying in RMB reduce foreign exchange exposure?
Yes, in some circumstances. Matching RMB receipts with RMB obligations can reduce the amount that requires currency conversion, depending on the company’s cash flow profile, timing, and treasury policy.
What information should be checked before sending an RMB payment?
Confirm the beneficiary name, bank and account details, currency, amount, payment purpose, charges, references, supporting records, and required approvals before submitting the transaction.
Strengthen Your Cross-Border Payment Process With Renminbi
Using renminbi for cross-border business transactions requires clear commercial terms, accurate payment information, suitable funding, and consistent controls. A defined process helps finance teams manage settlement, FX exposure, and reconciliation.
DBS offers corporate RMB accounts, payments, foreign exchange, and liquidity solutions for businesses managing China-related trade and treasury needs.
