(Yicai) April 17 -- China’s central bank will continue refining cross-border policies to streamline yuan settlements in Malaysia and Cambodia, China News Service reported today.

The People’s Bank of China aims to foster a more convenient and business-friendly environment for companies in both Southeast Asian countries to conduct foreign trade and investment transactions in yuan, according to the state news agency.

Bilateral currency settlement services between China and Malaysia have expanded rapidly under supportive policy frameworks. Cross-border yuan settlements between the two countries exceeded CNY300 billion (USD41 billion) last year, marking a 29 percent increase year-on-year and ranking second among members of the Association of Southeast Asian Nations, according to PBOC data.

Of that total, yuan settlements for goods trade surpassed CNY100 billion, up 16 percent from the previous year, and accounted for nearly one-quarter of Malaysia’s total cross-border settlements in both local and foreign currencies. In the first quarter of this year, yuan settlements between China and Malaysia reached CNY102 billion, a 27 percent increase.

In addition, the PBOC reaffirmed its commitment to strengthening communication and monetary cooperation with the National Bank of Cambodia, and to actively promoting policies that encourage bilateral use of local currencies.

Cross-border yuan settlements between China and Cambodia doubled to around CNY20 billion last year, according to the PBOC. Settlements for goods trade totaled CNY4 billion, up 32 percent year-on-year, accounting for 9 percent of Cambodia’s total settlements in local and foreign currencies. In the first three months of this year, yuan settlements rose to CNY5 billion, representing a 45 percent increase.

Editor: Emmi Laine