Payment and Delivery (3)
P: Well, Mr. Li, we've settled everything in connection with this transaction except the question of payment in Renminbi. Now,can you explain to me how to make payment in Renminbi?
L: Many of our business friends in England, France, Switzerland, Italy and West Germany are paying for our exports in Chinese currency. It is quite easy to do so.
P:I know some of them are doing that. But this is new to me. I've never made payment in Renminbi before. It is convenient to make payment in pound sterling, but I may have some difficulty making payment in Renminbi.
L: Many banks in Europe now carry accounts in Renminbi with the Bank of China, Beijing. They are in position to open letters of credit and effect payment in Renminbi. Consult your bank s and you'll see that they are ready to offer you this service.
P: Do you mean to say that I can open a letter of credit in Renminbi with a bank of London of Bern?
L: Surely you can. Several of the banks in London, such as the Bank of China (London), the National Westminster Bank and Barclays Bank are in a position to open letters of credit in Renminbi. They'll do so against our sales confirmation or contract.
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