Harbin Bank, a commercial bank headquartered in the capital city of Northeast China’s Heilongjiang province, successfully transferred 20 million yuan ($2.91 million) in cash through Harbin Taiping International Airport to Russia on July 23 -- the first time the province executed a renminbi cash cross-border transfer via air transport.

The cash was delivered to Vladivostok, where it will be used for currency exchange and business settlements.

Demand for renminbi is growing in Russia thanks to bilateral trade and the internationalization of the yuan.

Officials said that a sufficient supply of RMB in the Russian market will not only cut currency conversion costs and reduce foreign exchange risks for commercial banks, but also lower expenses and receipt fees by using RMB cash in Russia.

Convenient cross-border transfer of RMB cash between China and Russia will also play an important role in expanding the flow of RMB into the Russian market and increasing its global acceptance -- further boosting the development of bilateral trade and economic cooperation.

Harbin Bank, one of the founders of the China-Russia Financial Alliance, plays an important role in currency clearing services for the Chinese yuan and Russian ruble.

Cross-border cash transfers are offered as a normal service by Harbin Bank, after it signed cooperation agreements with some 10 Russian commercial banks.

Statistics reveal that in 2018, Harbin Bank’s ruble transaction volume was 58.76 billion rubles and cross-border transfers of the currency reached 60 million rubles; in addition, cross-border transfers of renminbi reached 40 million in cash and the amount of credit granted to Russian banks was equivalent to about 7 billion yuan.

The headquarters of Harbin Bank [Photo/chinanews.com]