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Belarusian Universal Commodity Exchange’s first sale using Chinese yuans completed

Belarusian Universal Commodity Exchange’s first sale using Chinese yuans completed

A Chinese woodworking company operating on the Belarusian market acted as the seller. A major European trading company that supplies sawn timber to the European Union, Asian and African countries was the buyer. As a result of the deal ¥1.8 million or $287,000 worth of square-sawn softwood timber was sold.

The Belarusian Universal Commodity Exchange (BUCE) implemented the ability to specify prices in Chinese yuans in late 2021 by realizing a set of measures meant to advance exchange trade with China. In the past deals involving residents of the People’s Republic of China were made primarily using U.S. dollars or euros, which presented a number of inconveniences for buyers and sellers. In particular, work with Chinese banks was complicated and the sides faced serious foreign exchange risks.

Transactions that use Chinese yuans

  • reduce forex exchange risks of the seller and the buyer
    and
  • greatly reduce the monetary transaction completion time.

This is why the novelty was welcomed by Chinese traders, primarily the companies that operate in the timber products section where sums of foreign trade contracts amount to millions of U.S. dollars. BUCE hopes that the first successful experience of making transactions using China’s national currency will serve as a good example for all the Chinese companies, which are accredited with the Belarusian Universal Commodity Exchange, and such deals will be made regularly.