The Dongning branch of Longjiang Bank in Mudanjiang city successfully transferred 15 million yuan ($2.33 million) in cash through Dongning inland port to Russia on May 29 –– the first time Heilongjiang province has executed a renminbi (RMB) cash cross-border transfer via road.

The cash will be delivered to Russia Asia-Pacific Bank, where it will be used for currency exchange and business settlements.

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

Sufficient supply of RMB in the Russian market will not only cut currency conversion costs and reduce foreign exchange risk to 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 in the Russian market and increasing global acceptance –– further boosting the development of bilateral trade and economic cooperation.

Government officials in Mudanjiang, Sui Fenhe, and Dongding, as well as bank representatives from China and Russia, attended a ceremony for the cross-border RMB transfer event on May 29.

“In the future, cross-border cash transfers will be offered as a normal service of Longjiang Bank,” said Zhang Jianhui, chairman of the company.

Government officials and bank representatives pose for a group photo at a ceremony to celebrate the successful transfer of Chinese currency to Russia via road on May 29. [Photo/ China Daily]

Dongning branch of Longjiang Bank in Mudanjiang city delivers 15 million yuan ($2.33 million) in cash to Russia Asia-Pacific Bank on May 29. [Photo/ China Daily]

Government officials and bank representatives pose for a group photo at a ceremony to celebrate the successful transfer of Chinese currency to Russia via road on May 29. [Photo/ China Daily]