Yuan remittance

Yuan remittance is one of the most common and reliable methods for transferring money internationally in the Chinese currency, the Yuan, which has become especially important in international trade and payments related to China. This payment method is very useful for both commercial companies and individuals such as students and people who need to send money to China. Given the rapid growth of the Chinese economy and the increase in trade exchanges between Iran and China, familiarity with the types of Yuan remittance, different payment methods and related costs can help you make a better decision for your financial transactions.

What is Yuan remittance?

A bill of exchange or Yuan remittance is a method of payment or international money transfer in the Chinese currency, the Yuan, which is used for business settlements, investments or financial transactions between individuals or companies. In addition to commercial and international companies, students can also pay their tuition and living expenses in this way. In fact, yuan remittance allows individuals or legal entities to conduct transactions with China or using Chinese currency.

Types of Yuan Transfers

Yuan transfers are used to send money to China in two ways: domestic and international. These two types of transfers have differences in terms of use, destination, and transfer process, which are explained in this article.

Domestic Yuan Transfer

The domestic type involves transferring money to bank accounts within China. These transfers are usually used for domestic payments between Chinese companies and individuals and have lower fees than foreign transfers. Also, the transfer time for domestic transfers is faster than foreign transfers, and it is not possible to send them abroad.

Foreign Yuan Transfer

The foreign type means transferring money from other countries to bank accounts in China and is suitable for international payments or people who plan to transfer money to China. The fee for this foreign transfer is usually higher than domestic transfers and may take longer. This method is used for things such as international purchases, payments to Chinese companies, or sending money to friends and family in China, etc.

Payment Methods for Yuan Remittance

There are also various methods for paying for Yuan remittance, which we mention below:

• SWIFT payment: This payment method uses the global SWIFT system for money transfers and is therefore highly secure and fast.
• Payment through online networks: These types of remittances are made through online services such as PayPal or TransferWise, and some of them have lower costs.
• Payment through Chinese banks: In this method, Chinese banks provide Yuan remittance services to send money to China.

Benefits of Yuan Remittance

As one of the most widely used methods in international transactions and money transfers in Yuan, Yuan remittance has several benefits for people who are active in the fields of trade, export and import, or even personal funds transfer. Also, unlike many currencies, Yuan has fewer irregularities, and many Chinese banks easily process Yuan remittances and transfer money to the destination account without additional currency problems. In addition, other advantages include:

Lower fees compared to other currencies

Remittances in yuan usually have lower fees than remittances in other currencies such as dollars or euros. This can be especially beneficial for people who regularly transact with China.

Lower fees than other currencies

RMB transfers usually have lower fees than foreign currency transfers in other currencies such as dollars or euros. This can be especially beneficial for people who regularly have financial transactions with China.

High transfer speed

RMB transfer systems process transactions quickly. This feature allows businesses and individuals to receive their funds without long delays in the transfer process.

Suitable for doing business with China

As one of the largest economies in the world, China is considered in many international transactions. RMB transfers are a simple and fast way for those who intend to buy or sell goods with China.

High transaction security

RMB remittance is highly secure due to the use of reliable and trusted financial systems. This security against fraud and other problems can reduce concerns.

• Access to China’s financial markets

Using RMB as the currency used in remittances can allow businesses to easily enter China’s financial markets and expand their business relations with this country.

How much does it cost to make a RMB remittance?

The cost of making a RMB remittance depends on various factors, including the exchange rate, bank or financial institution fees, and additional costs such as taxes and international transfer fees, etc. The fee charged through banking systems also includes a fixed fee or a percentage of the transfer amount and is determined based on factors such as the amount of the transfer, type of bank, destination of the remittance, etc. However, the fee charged for remittances made through online services such as PayPal, WeChat Pay, and other similar systems is usually calculated as a percentage of the transfer amount and is less expensive than banking services. Of course, these services may have limitations, such as daily transfer limits.

To transfer yuan, it is best to carefully review the terms and fees of different services and banks, and then consider the best method with the lowest cost.

Example:

A manufacturing company that sells its products to its customers and collects its income through this account.

What is an Individual White Yuan Account?

An Individual White Yuan Account is an account created by individuals to manage their personal financial transactions. This account is suitable for people who need to manage their money in Chinese Yuan.

Features of an Individual White Yuan Account

• Use: For personal transactions such as buying, selling, paying off debt, and saving.
• Account holder: Individuals.
• Assets: Owned by the individual.
• Legal structure: The account is created based on laws and regulations related to individuals.
• Transactions: Usually include purchases, daily payments, and saving.
• Credit and facilities: Banks may provide personal credit or credit cards for these accounts.

The corporate Yuan account is designed for commercial activities and the white personal Yuan account is designed for non-commercial and personal activities.

It is very important to choose the right account depending on the type of financial activities you have. If you have a business, a corporate Yuan account is more suitable; but if you only need to manage your personal money, a personal Yuan account is more suitable.

Summary

As a safe and fast way to transfer money to China, Yuan remittance has many advantages; from lower fees to high transfer speed and high security in transactions. Choosing the right payment method, depending on the type of remittance (domestic or international) and banking services or online methods, has a great impact on the final cost and transfer speed. For this reason, it is recommended that you carefully review the terms and fees before making any remittance and choose the most suitable option for making Yuan remittance.