Finally, some relief for the people residing in the Vietnam-China border areas, as they now will be able to use Chinese currency for now onwards.
This news came as the Vietnam's central bank on Thursday formally announced use of yuan around Vietnam-China border areas. This decision will help to foster trade between the two countries.
The State Bank of Vietnam said that people and few organizations also will be able to use yuan for purchasing goods and services starting October 12.
"The new circular has completed a legal framework for payment in border areas, and has standardized foreign exchange activities in the areas," Can Van Luc, Vietnamese banking and finance expert, senior advisor to the Chairman of the Bank for Industry and Development of Vietnam, said on Thursday.
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"The implementation of the new circular will facilitate payment in Vietnam-China border areas, encourage and promote their border trade," he said.
According to Nguyen Thi Mai, a 37-year-old Vietnamese trader in the border area, traders like her have already used yuan for payment with Chinese partners.
"Payment in yuan through banks and in cash in border areas is convenient. So the new circular is good for us because it formalizes the payment," she said.
Vietnam has seven provinces sharing the border with China -- Lang Son, Quang Ninh, Ha Giang, Lai Chau, Lao Cai, Cao Bang and Dien Bien.
