A renminbi (RMB) clearing bank has opened in Laos, making it easier for businesses and financial institutions in China and Laos to carry out cross-border transactions and further facilitate bilateral trade and investment.

The opening ceremony of the bank, held in Lao capital Vientiane on Monday, was attended by Lao Prime Minister Sonexay Siphandone, Governor of Laos' central bank Bounleua Sinxayvoravong, Charge d'Affaires of the Chinese embassy in Laos Wang Chang, and Vice President of the Industrial and Commercial Bank of China (ICBC) Zhang Weiwu.

The RMB clearing bank will create a fast, safe and economical cross-border settlement channel between China and Laos. Wang said the establishment of the RMB clearing bank in Laos is an important landmark in financial cooperation between China and Laos and will be an additional facility for traders from the two countries to arrange transactions in the local currency.

Wang added that the bank is aimed at helping enterprises and financial institutions carry out Chinese currency transactions between China and Laos, reducing the cost of the exchange rate, facilitating trade investment between the two countries, maintaining the financial stability in Laos and strengthening the economic-commercial relations between the two neighbors.

At the opening ceremony, Sinxayvoravong said the launch of RMB clearing is very important for the socio-economic development of Laos, as it supports the cooperation policy of the two sides to promote trade and investment for continuous and strong growth.

China is the main trading partner of Laos, and the volume of trade and investment continues to expand. The main Chinese goods imported from Laos in 2022 included machinery, electrical appliances and equipment, car parts, and steel. Meanwhile, mixed gold, gold bars, bananas, gold ores, iron ores, wood and furniture products, paper and paper products, fertilizers, latex, and fruits were exported to China.

The ICBC reaffirmed that it will use its outstanding potential to provide high-quality financial services, contribute to the Belt and Road Initiative in the framework of the China-Laos Economic Corridor, promote trade and investment cooperation between China and Laos to another important level, as well as continue to contribute to the construction of a shared future community between the two countries.

The ICBC Vientiane Branch has been working to apply for the establishment of RMB clearing in Laos since 2019, and the People's Bank of China, China's central bank, signed a memorandum of cooperation with the Lao central bank on the establishment of RMB clearing arrangements in Laos on Sept. 20, 2022.